National index: Manufacturers begin to struggle - East Bay Business Times:

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A manufacturing index compiled bythe Ariz.-based weakened to 47.7 in December, signaling the firstg contraction of the sector in 11 The tipping point for the indexx is 50, with a reading above that reflecting growth in the A reading below 50 represents a declines in manufacturing. The report said slowing demanedfor products, rather than excess inventories, resultef in manufacturers slowing production.
"December was apparently a very toug month asnew orders, productiomn and employment were all below the breakeven mark of 50 Norbert Ore, chairman of the ISM's manufacturingg business survey committee, said in a "Industries close to the housing market appear to be struggling more than others, and thosee involved in exports seem to be doing The overall reading of the index is the weakesyt since April 2003, and it also marksa the sixth straight month that the index has postefd a decline. Manufacturers also reported raw materiap inflation including oil and corn andnatural gas.
ISM did reporr growth in some productionh areasincluding tobacco, computers and petroleum and coal and On average, manufacturers surveyed said prices paid for goodes and services overall rose by 6.5 percent in 2007, and they anticipated a virtually identical increasd in 2008. Manufacturers also expecyt a 4 percent increase in wages anda 7.5 percentr hike for employee benefits in 2008--increasesx that slightly exceeded thosd reported for 2007. They anticipate their energy costx will rise nearly8 percent.