The final month of 2007 found economic activity in the manufacturing sector failing to grow following 10 consecutive months of expansion, according to the latest Manufacturing ISM Report on Business from the Institute of Supply Management in Tempe, AZ. By contrast, the overall economy grew for the 74th consecutive month.

"The recent trend has been toward slower growth," notes Norbert J. Ore, chair of the institute's supply management manufacturing business survey committee. "However, December was apparently a very tough month as new orders, production and employment were all below the break-even mark of 50%."

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