ISM Non-Manufacturing Activity Up

Tempe, AZ, June 5, 2007--Business activity in the non-manufacturing sector increased at a faster rate in May 2007, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business.

The report was issued today 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 50th consecutive month in May," Nieves said.

He added, "Business Activity, New Orders and Employment increased at a faster rate in May than in April. The Prices Index increased this month to 66.4 percent. Twelve non-manufacturing industries reported increased activity in May. Members' comments in May are mostly positive about business conditions. There is continued concern with rising fuel costs. The overall indication in May is continued economic growth in the non-manufacturing sector at a faster pace than in April."

The 12 industries reporting growth in May — listed in order — are: Mining; Arts, Entertainment & Recreation; Information; Management of Companies & Support Services; Professional, Scientific & Technical Services; Utilities; Finance & Insurance; Health Care & Social Assistance; Public Administration; Other Services*; Retail Trade; and Construction. The two industries reporting decreased activity from April to May are: Accommodation & Food Services and Wholesale Trade.

What respondents are saying: ...

 -- "Business activity remains stable. Fuel prices remain outrageously high." (Professional, Scientific & Technical Services)

-- "Commercial business is solid...retail very competitive...inverse yield curve squeezing margins." (Finance & Insurance)

--  "Increasing pressure on cost reduction as energy costs remain high." (Accommodation & Food Services)

--  "Housing market is still depressed." (Construction)

"Business growing." (Management of Companies & Support Services)