Manufacturing Expansion Slows, Lowest Since March

Tempe, AZ, November 1, 2007--Economic activity in the manufacturing sector expanded in October for the ninth consecutive month, while the overall economy grew for the 72nd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

The report was issued today by Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. "Manufacturing growth slowed in October to its lowest level since March 2007. While the New Orders Index continued to grow and the Production Index fell below 50 for the first time since January, the Employment Index grew slightly, signaling continuing strength in manufacturing employment. It does appear that the impact of the slow down in the financial, housing and transportation segments has spilled over into manufacturing with the exception being continued strength in new export orders."

The nine industries reporting growth in October — listed in order — are: Apparel, Leather and Allied Products; Petroleum and Coal Products; Food, Beverage and Tobacco Products; Paper Products; Plastics and Rubber Products; Computer and Electronic Products; Electrical Equipment, Appliances and Components; Transportation Equipment; and Chemical Products.