The final month of 2007 found economic activity in themanufacturing sector failing to grow following 10 consecutivemonths of expansion, according to the latest Manufacturing ISMReport on Business from the Institute of Supply Management inTempe, AZ. By contrast, the overall economy grew for the 74thconsecutive month.

"The recent trend has been toward slower growth," notes NorbertJ. Ore, chair of the institute's supply management manufacturingbusiness survey committee. "However, December was apparently a verytough month as new orders, production and employment were all belowthe break-even mark of 50%."

Ore says industries close to the housing market appear to bestruggling more than others, while those involved in exports seemto be doing better. He adds that slower demand appears to be moreof a problem than excessive inventories, judging from comments fromsupply executives, whose responses to an ISM survey formed thebasis of the report.