The expansion of U.S. manufacturing activities accelerated in March, data released Monday by the Institute for Supply Management (ISM) showed.

According to the latest Manufacturing ISM Report on Business, the March purchasing managers' index (PMI), which gauges the performance of the manufacturing sector, registered 55.3 percent, an increase of 1.1 percentage points from the February reading of 54.2 percent.

The PMI figure in March was the third lowest in the last 12 months, during which the average was 57.5 percent, the ISM report showed.

The expansion in the manufacturing sector, which is often signaled by a PMI reading above 50 percent, "indicates growth in manufacturing for the 31st consecutive month," said Timothy Fiore, chair of the ISM's Manufacturing Business Survey Committee.

Among all the 11 indicators tracked by the IMS, five illustrated a decrease in growth rates month-on-month, with the sharpest decline occurring in the imports index, which had decreased 4.2 percentage points to 51.1 percent.

"Imports expansion declined compared to the previous month," said Fiore. "The index reached its lowest level since January 2017, when it registered 49.2 percent."

Furthermore, the supplier deliveries index was down 0.7 percentage points to 54.2 percent, the inventories index dropped 1.6 percentage points to 51.8 percent, and the new export orders index dipped 1.1 percentage points to 51.7 percent, according to the report.

The biggest increase occurred in the employment index, rising 5.2 percentage points to 57.5 percent and trailed by the prices index, which was up 4.9 percentage points to 54.3 percent, the data showed.

The March PMI figure corresponded to a 3.7-percent increase in real gross domestic product on an annualized basis, the report added.

The U.S.-based ISM is a non-profit supply management association providing information and training for professionals and organizations.