TEMPE, AZ -- The PMI index of US manufacturing growth rose 180 basis points sequentially to 55.3% in June May, the 23d straight month of expansion in the sector.

New orders and production were both modestly up from May, and employment showed continued strength with an increase of 170 basis points to 59.9%, said the Institute for Supply Management.

Price inflation slowed for the second consecutive month, dropping 850 basis points in June to 68% after a 900 basis points drop in May. It is the lowest figure since August 2010 when the index registered 61.5%.

"While the rate of price increases has slowed and the list of commodities up in price has shortened, commodity and input prices continue to be a concern across several industries," said ISM spokesman Bradley J. Holcomb.

Among the industries reporting growth was Computer & Electronic Products.

Economic activity in the manufacturing sector expanded in June for the 23rd consecutive month, and the overall economy grew for the 25th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

A PMI over 42.5%, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates growth for the 25th consecutive month in the overall economy, as well as expansion in the manufacturing sector for the 23rd consecutive month.

“The past relationship between the PMI and the overall economy indicates that the average PMI for January through June (58.8%) corresponds to a 5.7% increase in real gross domestic product. If the PMI for June is annualized, it corresponds to a 4.5% percent increase in real GDP annually," Holcomb said.

JUNE 2011