The following is the un-edited press release from the Institute for Supply Management


New Orders, Production Expanding
Employment Growing, Deliveries Slowing
Prices Increasing

(Tempe, Arizona) — Economic activity in the manufacturing sector grew in January for the 32nd consecutive month, while the overall economy grew for the 51st 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. ""The manufacturing sector had another good month during January as measured by the ISM data. Both New Orders and Production remain relatively strong, and the panel of respondents is generally upbeat about their business. It appears that the sector has recovered from the disruptions and dislocations caused by the hurricanes in the Gulf Coast. The Prices Index rose slightly during the month; however, the list of commodities reported ''Up in Price'' is significantly reduced from December.""

TOP PERFORMING INDUSTRIES

The 13 industries reporting growth in January — listed in order — are: Apparel; Primary Metals; Miscellaneous*; Textiles; Food; Transportation & Equipment; Fabricated Metals; Electronic Components & Equipment; Industrial & Commercial Equipment & Computers; Furniture; Instruments & Photographic Equipment; Rubber & Plastic Products; and Chemicals.

WHAT RESPONDENTS ARE SAYING …

""Sales are still strong."" (Chemicals)
""Business was very steady last quarter of 2005, and first quarter of 2006 is also strong."" (Electronic Components & Equipment)
""November and December sales were robust, which helped in reducing inventory for the year end."" (Fabricated Metals)
""We experienced some softness in December sales. Reason unknown at this time."" (Food)
""The machine tool industry as a whole remains sluggish although there is more quoting activity and there are a few bright spots on the horizon."" (Industrial & Commercial Equipment & Computers)

COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY

Commodities Up in Price

Aluminum (6); Aluminum Products (2); Caustic Soda (21); Chemicals (24); Copper (8); Copper Products (2); Corrugated Containers (3)*; Energy (12); Natural Gas (42)*; Nickel; Oil Products; Paper; Plastics (18); Resins (7)*; Rubber (3); Steel (28); and Titanium.

Commodities Down in Price

Corrugated Containers*; Natural Gas*; Propylene; and Resins (2)*.
Commodities in Short Supply
Titanium is the only commodity reported in short supply.
*Reported as both up and down in price.
Note: The number of consecutive months the commodity is listed is indicated after each item.

JANUARY 2006 MANUFACTURING INDEX SUMMARIES
PMI

The PMI indicates that the manufacturing economy grew in January for the 32nd consecutive month. The PMI for January registered 54.8 percent, a decrease of 0.8 percentage point when compared to December''s seasonally adjusted reading of 55.6 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

A PMI in excess of 42 percent, over a period of time, generally indicates an expansion of the overall economy. The January PMI indicates that both the overall economy and the manufacturing sector are growing. The past relationship between the PMI and the overall economy indicates that the PMI for January (54.8 percent) corresponds to a 4.4 percent increase in real gross domestic product (GDP) on an annual basis.

New Orders

ISM''s New Orders Index grew in January with a reading of 58 percent. The index is 1.1 percentage points lower than the seasonally adjusted 59.1 percent registered in December, and January is the 33rd consecutive month the index has exceeded 50 percent. A New Orders Index above 51.1 percent, over time, is generally consistent with an increase in the Census Bureau''s series on manufacturing orders (in constant 2000 dollars). Thirteen industries reported increases during January: Apparel; Primary Metals; Miscellaneous*; Transportation & Equipment; Textiles; Food; Furniture; Rubber & Plastic Products; Industrial & Commercial Equipment & Computers; Fabricated Metals; Electronic Components & Equipment; Chemicals; and Paper.

Production