The Institute for Supply Management said economic activity in the manufacturing sector failed to grow in June, while the overall economy expanded for the 20th consecutive month. Comments from purchasing and supply managers were still mixed. Companies' capital equipment purchases appeared to be lagging, while metal fabricators saw signs of improvement. Improved showing of ISM's New Orders, Production and New Export Orders Indexes were encouraging and made it appear that manufacturing is positioned for a second half recovery. "The mood of the survey respondents has definitely turned upbeat, and is evidenced by the fact that nine industries reported growth this month," said survey chairman Norbert Ore. The major concern for manufacturers in June was the cost of natural gas.