Growth in Non-Manufacturing Index Slows

Tempe, AZ, April 6, 2007--Business activity in the non-manufacturing sector increased at a slower rate in March 2007, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business.

The report was issued by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee; and senior vice president — supply management for Hilton Hotels Corporation. "Non-manufacturing business activity increased for the 48th consecutive month in March," Nieves said. He added, "Business Activity, New Orders and Employment increased at a slower rate in March than in February. The Prices Index increased 9.5 percentage points this month to 63.3 percent. Ten non-manufacturing industries reported increased activity in March. Members' comments in March indicate a concern with fuel costs, the economy and the impact on business conditions. The overall indication in March is continued economic growth in the non-manufacturing sector, but at a slower pace than in February."

The 10 industries reporting growth in March — listed in order — are: Utilities; Educational Services; Other Services*; Retail Trade; Finance & Insurance; Transportation & Warehousing; Health Care & Social Assistance; Professional, Scientific & Technical Services; Public Administration; and Construction. The four industries reporting decreased activity from February to March are: Management of Companies & Support Services; Accommodation & Food Services; Information; and Arts, Entertainment & Recreation.

What respondents are saying:.

"Overall core business activity is slightly slower." (Finance & Insurance)

"Constant increases in fuel costs seem to be causing an economic downturn. Outlook remains cautiously optimistic." (Professional, Scientific & Technical Services)

"Business activity seems to have slowed with some brightness on the horizon." (Wholesale Trade)

"Market remains stable." (Information)

"Business is OK but not great. We will not get the price in the market. Making our year depends upon cost control." (Agriculture, Forestry, Fishing & Hunting)