The following is the unedited transcript of the news release from Institute for Supply Management .


(Tempe, Arizona) — Economic activity in the manufacturing sector failed to grow in April, while the overall economy grew for the 78th 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 failed to grow in April as the PMI fell below 50 percent for the third consecutive month. Manufacturers are in a situation where both new orders and production are slowly declining, but prices continue to rise at highly inflationary rates. Bright spots this month are the growth in the Backlog of Orders Index after six consecutive months of decline, continued strength in new export orders and a reduction in customers'' inventories.""""

PERFORMANCE BY INDUSTRY

The seven industries reporting growth in April — listed in order — are: Computer & Electronic Products; Miscellaneous Manufacturing; Printing & Related Support Activities; Paper Products; Transportation Equipment; Machinery; Furniture & Related Products; and Chemical Products. The industries reporting contraction in April are: Wood Products; Textile Mills; Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Fabricated Metal Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; and Nonmetallic Mineral Products.

WHAT RESPONDENTS ARE SAYING ...

""""The decline in the value of the dollar is dramatically affecting our material prices because we purchase over half of our material requirements from overseas."""" (Transportation Equipment)
""""Higher energy rates, unfavorable exchange rates, high levels of inflation in Asia and a drop in demand are challenging our business and supply chain."""" (Nonmetallic Mineral Products)
""""Continued bio-fuel/spec investor driven inflation of commodities is stifling!"""" (Food, Beverage & Tobacco Products)
""""Still strong in spite of general business slowdown."""" (Primary Metals)
""""Oil, oil, oil, energy, energy, energy, metals, metals, metals."""" (Fabricated Metal Products)


COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY

Commodities Up in Price

Aluminum (3); Aluminum Extrusions (2); Caustic Soda (2); Copper (3); Copper Laden Products (2); Corn; Corn Syrup; Diesel Fuel (2); Fuel Surcharges (2); Gasoline; High Density Polyethylene; Natural Gas (6); Polypropylene; Propane; Resins; Solvents; Soybean Oil; Stainless Steel — Sheet; Steel (4); Steel — Cold Rolled; Sulfuric Acid (6); and Transportation Costs.

Commodities Down in Price

Methanol is the only commodity reported down in price.

Commodities in Short Supply

Caustic Soda (2) and Steel.


APRIL 2008 MANUFACTURING INDEX SUMMARIES

PMI

Manufacturing failed to grow for the third consecutive month in April as the PMI registered 48.6 percent, the same as in March. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.