Industry Reports Indicate Solid Job Growth : Employment: May figures show the fastest increase in more than five years, purchasing managers say.

Manufacturing jobs grew in May at the fastest pace in more than five years as production roared ahead for the ninth straight month, the nation’s purchasing managers said Wednesday.

The National Assn. of Purchasing Management said that of the 20 industries in the manufacturing sector, 18 reported stronger businesses last month than in April. It was the largest number to report gains since March, 1990.

“Generally, the tone of the economic numbers is quite solid,” said economist David Jones of Aubrey G. Langston & Co. Inc. “It’s the kind of strength that leads to more orders, more employment, more production and more growth.”

The group said its overall index held at 57.7% for May, the same as for April. A reading above 50% indicates that manufacturing is generally expanding, whereas a reading below 50% points to a decline.

The group, which is based in Tempe, Ariz., said the robust activity caused prices to rise across the board for manufacturers, sparking more inflation fears and initially causing bond yields to rise and stocks to fall. The markets, however, ended with a gain.

“Economic growth continued at the same strong rate in May as in April, resulting in the broadest increase in manufacturing employment since late 1988 and the most widespread price increases paid by the manufacturing (sector) since October, 1990,” said Ralph Kauffman, chairman of the group’s Business Survey Committee.

Economists, however, said prices were rising for the commodities manufacturers use to make their goods and not the retail prices consumers pay.

“I think the inflation story is a future story,” Jones said. “We’re not getting as much on the inflation side as we normally would in this stage of a rebound.”

The NAPM employment index surged to 52 last month from 50.8 in April, making for the second straight gain and the highest level since December, 1988.

The manufacturing group said its price index picked up last month.

The survey found widespread price increases, with the index rising to 71.5% for last month.