TEMPE, AZ – Economic activity in the manufacturing sector expanded in July for the 12th consecutive month, says the Institute for Supply Management. The PMI was 55.5%, down 70 basis points.

A reading above 50% indicates the manufacturing economy is generally expanding.

New orders fell 5 percentage points to 53.5%. Production decreased 4.4 points to 57%. Inventories grew 4.4 points to 50.2%, and customer inventories were up 1 point to 39%. Backlogs dropped to 54.5%, down 2.5 points.

“Manufacturing continued to grow during July, but at a slightly slower rate than in June. Employment, supplier deliveries and inventories improved during the month and reduced the impact of a month-over-month deceleration in new orders and production. July marks 12 consecutive months of growth in manufacturing, and indications are that demand is still quite strong in 10 of 18 industries. Prices that manufacturers paid for their inputs were slightly higher but stable, with only a few items on the short supply list,” said ISM spokesperson Norbert J. Ore.

The overall economy grew for the 15th consecutive month, according to the firm.