TEMPE, AZ – The June PMI registered 50.9%, up 1.9 percentage points, the Institute for Supply Management said today.

This indicates expansion in the manufacturing sector for the fifth time in the first six months of 2013, said Bradley J. Holcomb, chair of ISM.

Inventories were up 1.5 percentage points to 50.5%, and customer inventories were down 1 percentage point to 45%. Backlogs registered 46.5%, down 1.5 percentage points.

“The New Orders Index increased in June by 3.1 percentage points to 51.9 %, and the Production Index increased by 4.8 percentage points to 53.4%,” said Holcomb. “The Employment Index registered 48.7%, a decrease of 1.4 percentage points compared to May's reading of 50.1%. Manufacturing employment contracted for the first time since September 2009, when the index registered 47.8%. The Prices Index registered 52.5%, increasing 3 percentage points from May, indicating that overall raw materials prices increased from last month. Comments from the panel generally indicate slow growth and improving business conditions."

Economic activity in the manufacturing sector expanded in June following one month of contraction, and the overall economy grew for the 49th consecutive month, says ISM.