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


PMI at 49.6%



(Tempe, Arizona) — Economic activity in the manufacturing sector failed to grow in May, while the overall economy grew for the 79th 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 May as the PMI fell below 50 percent for the fourth consecutive month. In relative terms, May was down slightly from April as the rate of contraction in manufacturing slowed. The Production Index was a bright spot as it moved above 50 percent after declining for two months. Manufacturers find themselves caught between rising costs and weakening demand in many industries. Exports continue strong due to the weak dollar — without the weak dollar the story would be much more negative in manufacturing.""""

PERFORMANCE BY INDUSTRY

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

WHAT RESPONDENTS ARE SAYING ...

""""Higher prices, tighter supply, longer lead times, shrinking inventory (same as last month)."""" (Transportation Equipment)
""""Just two months ago we were cautiously optimistic, but now sales inquiries are coming in at a snail''s pace."""" (Machinery)
""""Ethanol-driven agricultural commodity increases continue to pose major hurdles."""" (Food, Beverage & Tobacco Products)
""""Pricing is skyrocketing for chemicals."""" (Chemical Products)
""""Current forecast flat for Q2 through Q4 after dip in Q1."""" (Computer & Electronic Products)



COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY

Commodities Up in Price

Acrylics; Additives; Adhesives; Aluminum (4); Aluminum Castings; Aluminum Extrusions (3); Caustic Soda (3); Chemicals; Copper Laden Products (3); Copper Wire; Corn (2); Corn Based Products; Corrugated Containers; Crude Oil; Diesel Fuel (3); Freight; Fuel Oil — #2; Fuel Surcharges (3); Gasoline (2); High Density Polyethylene (2); Natural Gas (7); Petroleum Based Products; Phosphoric Acid; Plastic — Molded Products; Polypropylene (2); Resins (2); Scrap Metal; Soybean Oil (2); Stainless Steel; Steel (5); Steel — Structural; and Sulfuric Acid (7).
Commodities Down in Price

Methanol (2) and Zinc are the only commodities reported down in price.
Commodities in Short Supply

Caustic Soda (3); Steel (2); and Sulfuric Acid.

Note: The number of consecutive months the commodity is listed is indicated after each item.

MAY 2008 MANUFACTURING INDEX SUMMARIES
PMI