TEMPE, AZ -- Economic activity in the manufacturing sector grew in June for the 37th consecutive month, while the overall economy grew for the 56th consecutive month, according to the monthly ISM survey of manufacturing executives.

The PMI indicates that the manufacturing economy grew in June for the 37th consecutive month as it registered 53.8%, a decrease of 0.6 percentage point when compared to May's reading of 54.4%. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.

The report was issued today by the Institute for Supply Management.

A PMI over 42%, over a period of time, generally indicates an expansion of the overall economy. The June PMI indicates that both the overall economy and the manufacturing sector are growing.

Year to date, the average PMI (55.4%) corresponds to a 4.6% increase in real GDP. The annualized June rate of 53.8% corresponds to a 4% increase in real GDP, said chairman Norbert J. Ore.

"Manufacturing growth continued in June, and although the rate of growth slowed slightly, renewed strength in June's new orders index provides encouragement for the third quarter. The sector is benefiting from the weaker dollar and business investment. While energy and raw material prices are still a concern, our members indicate that they are coping with the challenges, and generally see their businesses in a continuing growth mode."

The industries reporting growth in June included Industrial and Commercial Equipment and Computers, and Electronic Components and Equipment.

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