U.S. manufacturing sector expanded in June

The U.S. manufacturing sector expanded in June for the 23rd consecutive month, with the overall economy growing for the 25th straight month, according to the latest report from the Institute for Supply Management (ISM).

According to the June ISM report, the PMI registered 55.3 percent in the month. That figure is up 1.8 percentage points from May's 53.5 percent reading. A reading above 50 generally indicates an expansion, according to the ISM. What's more, the ISM's New Orders Index hit 51.6 percent in June, which is a 0.6 percentage point increase from May's 51 percent level.

Moreover, the ISM's Production Index hit 54.5 percent in the month, representing a climb of 0.5 percentage point when compared to May's 54 percent. The manufacturing sector continues to be strong in its hiring, according to the ISM, with the Employment Index rising 1.7 percentage points to 59.9 percent in June.

ISM business survey committee chair Bradley J. Holcomb affirmed that while commodity prices fell in June, many manufacturers are still being squeezed by their volatility.

"The rate of increase in prices slowed for the second consecutive month, dropping 8.5 percentage points in June to 68 percent," he said. "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."