Manufacturers in the Buffalo Niagara region enjoyed continued growth throughout June, according to the local chapter of the National Association of Purchasing Management.
Strength in new orders and employment, along with expanding inventories, helped propel the growth rate. It marks the second consecutive month the rate of growth has improved.
The continued growth also marks the 48th consecutive month of expansion, continuing the longest growth streak in more than nine years. The growth has been slight, but steady.
"Our manufacturers indicate the economy in the local area is expanding. In the last month it has expanded at a faster rate than the previous month. We look at this as a positive indication," said Arthur Araminio, the chairman of the local group's business survey.
The increase in June pushed the purchasing managers' index to its third-highest level since last July. The index moved to 68.9 from 64 last month. Whenever the index tops 50, it indicates growth at area factories.
The greatest growth was in the inventory index, jumping from 56.6 points to 67.1 points. Higher levels of purchased inventory indicates growth should continue down the line.
Employment continued to grow, from 56.6 points in May to 66.6 points. That is about the same amount of growth as last month and reflects hiring in high technology industries while other industries are maintaining current employment levels.
The flow of new orders, which skyrocketed in February, continued with the momentum it gained in May, increasing by 8 points, from 62.6 to 70.6. Growth in new orders generally indicates business will be increasing at a faster rate.