Economic activity in the U.S. manufacturing sector expanded in June at its fastest pace since April 2006, the Institute for Supply Management (ISM) said Monday in its latest report on business.

The Tempe, Arizona-based trade group said its manufacturing index registered 56.0 in June, the fifth consecutive month of growth, up from the May reading of 55 and higher than the market expectation of 55.4.

A reading above 50 indicates growth while a reading below 50 indicates contraction.

"Following a weak first quarter, the manufacturing sector rebounded in a strong fashion during the second quarter," said Norbert J. Ore, chair of the ISM's manufacturing business survey committee, while issuing the report.

The June performance appears sustainable in the third quarter "due to the current strength in New Orders and Production," Ore said.

Index for new orders stood at 60.3 in June, up from 59.6 in the previous month. Production index rose to 62.9 from 58.3, according to the report.

The 12 industries reporting growth in June -- listed in order --are petroleum and coal products; chemical products; plastics and rubber products; food, beverage and tobacco products; nonmetallic mineral products; computer and electronic products; paper products; fabricated metal products; primary metals; miscellaneous manufacturing; textile mills; and machinery.

The manufacturing index has bounced above and below 50 for several months. It showed contraction in November, rebounded in December, fell back again in January, then kept expansion.

The ISM is a trade association representing approximately 40,000 supply management professionals.

The overall economy grew for the 68th straight month in June, according to the institute.