The following is the unedited transcript of the news release from the Institute for Supply Management™ Manufacturing Business Survey Committee.



December Manufacturing ISM Report On Business®

PMI at 54.2%

New Orders, Production Expanding

Employment Growing, Deliveries Slowing

Prices Increasing

(Tempe, Arizona) – Economic activity in the manufacturing sector grew in December for the 31st consecutive month, while the overall economy grew for the 50th 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, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. """"2005 was an excellent year for the manufacturing sector as measured by the ISM data. In December, we saw a decline in the rate of growth of both new orders and production, but both indexes are at levels that support economic growth. We saw a significant slowing in the upward pricing spiral that has been a source of continuing concern for manufacturers. A strong fourth quarter should carry significant momentum forward into 2006.""""

TOP PERFORMING INDUSTRIES

The 10 industries reporting growth in December – listed in order – are: Miscellaneous*; Petroleum; Food; Primary Metals; Industrial & Commercial Equipment & Computers; Electronic Components & Equipment; Instruments & Photographic Equipment; Paper; Rubber & Plastic Products; and Transportation & Equipment.

WHAT RESPONDENTS ARE SAYING ...

""""Business remains strong into our traditional slow time. This is a big surprise. The reason is the construction economy continues to be strong."""" (Fabricated Metals)
""""Sales have improved as a result of impending holidays."""" (Food)
""""Steel prices are staying at the fourth-quarter level at least for the first quarter and possibly the first six months of 2006."""" (Furniture)
""""Although gas and electricity costs are quite high, we are able to offset these costs by a strong construction market that enables us to maintain a good profit margin."""" (Primary Metals)
""""Business continues to remain strong. We are beginning to see a retreat in petroleum-based goods."""" (Textiles)

COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY

Commodities Up in Price

Aluminum (5); Aluminum Products; Caustic Soda (20); Chemicals (23); Copper (7); Copper Products; Corrugated Containers (2); Corrugated Packaging; Energy (11); Freight; Gasoline (6); LDPE (2); Natural Gas (41); Natural Rubber; Oil (8); Packaging; Petroleum Products (2); Plastic Resins (11); Plastics (17); Resins* (6); Rubber (2); and Steel (27).

Commodities Down in Price

Diesel Fuel (2) and Resins*.

Commodities in Short Supply
Caustic Soda (2); Plastics; Resins; and Steel (3).