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TEMPE, AZ – The manufacturing sector grew for the 25th straight month in June, boosted by spikes in new orders and production. Manufacturing rebounded from three months of slowing growth, according to the latest Institute for Supply Management poll.

“The improved rate of growth in new orders is quite encouraging, particularly when combined with a slower rate at which prices are escalating,” said ISM chairman Norbert Ore.

For the month the PMI measure of economic activity rose 2.4 points sequentially, to 53.8%. New orders climbed 5.5 points to 57.2%, while and production rose 0.7 points to 55.6%.

Backlogs and inventories at manufacturers were flat, but customer stock levels dropped 3.5 points.

Employment improved 1.1 points to 49.9, just under the benchmark for growth.

Electronic components and equipment, and industrial and commercial equipment and computers, reported growth during the month.

Ore warned that energy costs remain a hurdle. “High energy costs and the stronger dollar are still major concerns to purchasers,” Ore said.

                                    Feb.      March April      May June

PMI                             55.3      55.2     53.3        51.4 53.8

New orders                 55.8      57.1     53.7        51.7 57.2

Production                  56.7      56.5     56.7        54.9 55.6

Inventories                 48.6      54.1     47.9        47.8 47.8

Customer inventories 42.5      46.0     41.5        47.5 44.0

Backlogs                     50.5      56.0     53.0        51.0 51.0

Source: Institute for Supply Management, July 2005

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