For the 13th consecutive month, economic activity in manufacturing grew in June 2004, according to the Institute for Supply Management's Report On Business. In addition, the nation's overall economy grew for the 32nd consecutive month, according to the report.

"The manufacturing sector grew at a slightly slower, but still aggressive, rate in June," said Norbert Ore, chair of the ISM Manufacturing Business Survey Committee.

Ore pointed to additional encouraging signs in the report.

"The rate of growth in New Orders and Production remained encouraging as we head into the third quarter," he said. "Additionally, the Inventories Index rose above 50 percent, a somewhat rare occurrence, but not unexpected at this stage of a recovery.

"June represents a strong finish to the first half of the year, and the current picture is very encouraging for the third quarter, as New Orders and Production are still growing significantly," said Ore.

Among the industries cited as growing were rubber and plastic; industrial and commercial equipment and computers; electronic components and equipment; petroleum; and fabricated metals.

ISM's Price Index showed that manufacturers were continuing to pay higher prices, although at a somewhat lower rate than previously.

Imports of materials by manufacturers grew in June, as seen in industries such as fabricated metals; industrial and commercial equipment; chemicals; and wood products.

In related statistics, on July 2, the U.S. Labor Department reported that the manufacturing sector lost 11,000 jobs. This came after a winning streak of sorts when an estimated 75,000 jobs had been added during the previous four months. Most of the losses in manufacturing last month were in the non-durable goods sector. The overall U.S. unemployment rate remained at 5.6 percent as the labor force grew slightly faster than employment.