TEMPE, AZ -- The PMI index of U.S. manufacturing dipped in December but grew overall for the 31st straight month. The December PMI was 54.2%, down 3.9 points from November, according to the latest Institute for Supply Management poll. A score over 50% shows expansion.

The December PMI indicates that both the overall economy and the manufacturing sector are growing, ISM said.

In a statement, chairman Nobert Ore said, “In December, we saw a decline in the rate of growth of both new orders and production, but both indexes are at levels that support economic growth. We saw a significant slowing in the upward pricing spiral that has been a source of continuing concern for manufacturers. A strong fourth quarter should carry significant momentum forward into 2006.”

For the month, new orders slid 4.3 points to 55.5%, while production fell 3.6 points to 60.6%. Backlogs were down 3.5 points. Inventories at manufacturers and customers increased 4.5 points. Employment dipped 3.9 points, to 52.7

The categories of electronic components and equipment, and industrial and commercial equipment and computers both reported growth during the month.

The December PMI corresponds to a 4.2% increase in real GDP.