Manufacturing Gauge Dashes Hope Economy Firing On All Cylinders Purchasers Still See Decline Order backlogs shrink for the fifth month in row as uncertainty still looms large.(A)

Byline: CHRISTINA WISE

The strength that has surfaced in other parts of the economy in recent weeks doesn't seem to have found its way to the nation's manufacturing sector.

The Institute of Supply Managers said Monday its Purchasing Manager's Index rose to 49.2 in November, up from October's 48.5 reading but below the 51 economists expected. Any level below 50 signals a decline in manufacturing activity.

"Comments from purchasing and supply executives indicate that their business is either "flat', "depressed' or in the "doldrums' this month," said Norbert Ore, the ISM's chairman.

"The dock strike on the West Coast was still on the minds of many, as they apparently were taking other measures such as using air freight or shipping through East Coast ports.

"The situation with Iraq is another major concern, as members felt the uncertainty is a deterrent to business," he said.

The index's individual components were also disappointing.