Manufacturing remains sluggish in May

NEW YORK -- A private trade group says its index of manufacturing activity rose slightly in May, but remained below the benchmark needed to show growth in the sector.

The group said on Monday that the index of prices is the highest since April 2004.

The reading of 49.6 for the overall index from the Institute for Supply Management beat economists' expectations of 47.9, according to the consensus estimate of Wall Street economists surveyed by Thomson Financial/IFR.

A reading above 50 shows the manufacturing sector is growing, while a reading below 50 signals contraction.

The index has hovered near its lowest level in five years since February.