Feb. 1, 2007--Economic activity in the manufacturing sector contracted in January following a one-month expansion, while the overall economy grew for the 63rd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business(R). The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management(TM) Manufacturing Business Survey Committee. "After a slight rebound in December, the manufacturing sector failed to grow in January. While New Orders remained positive, the signals are clear that there is relatively little change taking place in the sector as the PMI has averaged 50.5 percent for the past four months. In overall terms, manufacturing lost momentum in the second half of 2006, and is starting 2007 in a less than robust fashion. Also, results show a significant decline in the Inventories Index to the lowest level since February 2002, indicating that a significant liquidation is taking place in many supply chains. This is the largest month-to-month decrease since July/August 1984." TOP PERFORMING INDUSTRIES The seven industries reporting growth in January -- listed in order -- are: Apparel, Leather & Allied Products; Petroleum & Coal Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Furniture & Related Products; Transportation Equipment; and Paper Products. WHAT RESPONDENTS ARE SAYING ... -- "General organic chemical pricing and availability has improved greatly." (Chemical Products) -- "We are forecasting another record year of sales as the commercial construction business continues to be strong." (Fabricated Metal Products) -- "Business is generally slower. We attribute much of it in our business to the slowing housing and construction market." (Paper Products) -- "Initial indication of a bit stronger metal demand than we thought at the end of 2006." (Primary Metals) -- "Suppliers are increasing leadtimes due to increased backlog." (Transportation Equipment)