TEMPE, AZ – Economic activity in the manufacturing sector expanded in June for the 11th consecutive month, according to the Institute for Supply Management. The PMI registered 56.2%, a drop of 3.5 percentage points.

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

New orders for the month dipped 7.2 points to 58.5%, while production dropped 5.2 points to 61.4%. Inventories were up a slight 0.2 points to 45.8%, while customer inventories surged 6 points to 38%. Backlogs fell 2.5 points to 57%.

“The manufacturing sector continued to grow during June; however, the rate of growth, as indicated by the PMI slowed when compared to May. The lower reading for the PMI came from a slowing in the New Orders and Production Indexes. We are now 11 months into the manufacturing recovery, and given the robust nature of recent growth, it is not surprising that we would see a slower rate of growth at this time. The sector appears to be solidly entrenched in the recovery. Comments from the respondents remain generally positive, but expectations have been that the second half of the year will not be as strong in terms of the rate of growth, and June appears to validate that forecast,” said ISM spokesperson Norbert J. Ore.

The overall economy grew for the 14th consecutive month, says ISM.

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