Slower Demand Hits Manufacturing Sector

Washington, DC, January 2, 2008--Manufacturing activity declined in December, the first time in 11 months, according to the Institute of Supply Management.

The institute’s manufacturing index had a reading of 47.7, compared to the 50.8 in November.

A reading above 50 shows growth in the sector. The report said slowing demand for products, rather than excess inventories, resulted in slower manufacturing.

"December was apparently a very tough month as new orders, production and employment were all below the breakeven mark of 50 percent," said a statement from Norbert Ore, chairman of ISM's Manufacturing Business Survey Committee. "Industries close to the housing market appear to be struggling more than others, and those involved in exports seem to be doing better."