ISM Non-Manufacturing Activity Up in April

Tempe, AZ, May 3, 2007--Business activity in the non-manufacturing sector increased at a faster rate in April 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 49th consecutive month in April," Nieves said. He added, "Business Activity, New Orders and Employment increased at a faster rate in April than in March. The Prices Index increased slightly this month to 63.5 percent. Thirteen non-manufacturing industries reported increased activity in April. Members' comments in April are mixed about business conditions. There is continued concern with fuel and energy costs. The overall indication in April is continued economic growth in the non-manufacturing sector at a faster pace than in March."

Top Performing Industries

The 13 industries reporting growth in April — listed in order — are: Arts, Entertainment & Recreation; Accommodation & Food Services; Transportation & Warehousing; Utilities; Information; Public Administration; Other Services*; Retail Trade; Real Estate, Rental & Leasing; Finance & Insurance; Construction; Educational Services; and Health Care & Social Assistance. The two industries reporting decreased activity from March to April are: Wholesale Trade; and Professional, Scientific & Technical Services.

What Respondents are Saying...

"Progressive improvement in the business cycle." (Transportation & Warehousing)

"We are showing signs of recovery from bad news. Transactions are increasing faster than our normal seasonal increase." (Accommodation & Food Services)

"Concerned about the rapid increase in energy cost." (Professional, Scientific & Technical Services)

"The level of business is maintaining an even level at this time. Capital projects are ramping upwards." (Educational Services)

"Sales in the first three months of the year are slower than expected while pressure to lower prices is increasing." (Wholesale Trade)