TEMPE, AZ -- US manufacturing economic activity slowed but still expanded in September for the second consecutive month, according to a survey of supply executives.

The September PMI measure of economic activity was 52.6% down 0.3 points from August, the Institute for Supply Management Manufacturing said. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.

A PMI in excess of 41.2%, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates growth for the fifth consecutive month in the overall economy, as well as expansion in the manufacturing sector for the second consecutive month since January 2008. 

The New Orders index Was 60.8%, down 4.1 points from August but still good for a third consecutive month of growth. A reading above 48.8%, over time, is generally consistent with an increase in the Census Bureau’s series on manufacturing orders (in constant 2000 dollars).

Norbert J. Ore, chair of ISM's Manufacturing Business Survey Committee, said, “While the rate of growth moderated slightly compared to August, the recovery broadened as the number of industries reporting growth increased from 11 to 13. Both new orders and production are growing, but at a slower rate when compared to August. It appears the fundamentals for continuing recovery are still at work as inventories and sales are gaining balance."

Twelve of the 18 manufacturing industries expect to derive some benefit from the government stimulus program known as the American Recovery and Reinvestment Act, ISM said.