That seems like it is nearing the upper limits of acceptability.
The clearance you are experiencing is a combination of the slop in the splines and side gears (usually minimal) and the backlash on the ring gear. You might want to pull the rear cover and measure your backlash and if it is high set it to the low limit for your rear end. That will measurably reduce the slop you are detecting.
When you go low on backlash be sure to check the backlash at four positions on the ring gear that are 90˚ apart. If you discover tight spots back off a bit until they do not present an issue.
Another thing you want to be sensitive to is decreased backlash produces increased
oil shear issues and elevated
oil temperatures. If you start to loose
oil out the breather on the housing (and you're filled to the proper level) you will require either an oil cooler or an increased backlash on the R&P.
While you are in there you might also want to check your pinion depth against the Master Housing Depth (MHD) spec for your rear end.
Ed