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*DJ US ISM Dec Mfg Business Index 51.4 Vs Nov 49.5

01/03/2007
Dow Jones News Services
(Copyright © 2007 Dow Jones & Company, Inc.)



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*DJ US ISM Dec Mfg Business Index Expected 50.0



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*DJ US ISM Dec Prices Index 47.5 Vs Nov 53.5



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01-03-07 1000ET

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*DJ US ISM Dec Employment Index 49.7 VS Nov 49.2



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01-03-07 1000ET

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*DJ US ISM Dec New Orders Index 52.1 Vs Nov 48.7



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*DJ US ISM Dec Production Index 51.8 Vs Nov 48.5



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*DJ US ISM Dec Inventories 48.4 Vs Nov 49.7



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*DJ ISM: December Manufacturing 'Proved Resilient'



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01-03-07 1002ET

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DJ DATA SNAP/ISM Mfg: US Dec Business Index 51.4 Vs Nov 49.5


=======================================================
Dec Nov ! !
ISM Index 51.4 49.5 ! ISM Forecast: 50.0 !
Prices 47.5 53.5 ! Actual: 51.4 !
Employment 49.7 49.2 ! !
=======================================================



NEW YORK (Dow Jones)--U.S. factories saw a modest gain in activity in the final month of 2006, recovering from November's unexpected and unwelcome contraction in growth.

The Institute for Supply Management, a private research group, reported Wednesday that its index of manufacturing activity moved to 51.4 in December, from the contractionary 49.5 in November and the 51.2 seen in October. Readings above 50 point to expansion in activity. Economists polled in a survey by Dow Jones Newswires had expected the December index to hit 50.0.

"Manufacturing proved resilient in December, as the [manufacturing index] returned to growth," said Norbort Ore, who directs the ISM manufacturing survey. He added, "the prices index is trending downward, relieving some of the inflationary pressure that has troubled manufacturing since the middle of 2003."

The softening trend in the ISM survey has raised concern in some quarters about the broader state of the U.S. economy, even as manufacturing represents a relatively small portion of total economic output, relative to the service sector. The contraction in manufacturing activity seen in November had been the first downturn in over three years for the sector, and as such, December's return to growth stands as welcome news.

In the report, the group noted a further rolling back in inflation pressures, with the prices index standing at 47.5, versus November's 53.5. The index stood at 47.0 in October.

Meanwhile, production ramped up modestly, with that measure standing at 51.8, from the prior month's 48.5, while the new orders index came in at 52.1, an improvement from November's 48.7.

The ISM's manufacturing employment index was 49.7 for last month; it was 49.2 in November. The inventories index stood at 48.4, after 49.7 the prior month.
 
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