ISM Non-Manufacturing Index Rises in June

Tempe, AZ, July 5, 2007--Business activity in the non-manufacturing sector increased at a faster rate in June 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 51st consecutive month in June," Nieves said. He added, "Business Activity and Employment increased at a faster rate in June than in May. The Business Activity Index registered 60.7 percent, the highest since April 2006 when it registered 61.1 percent. The New Orders index decreased to 56.9 percent, and the Prices Index decreased to 65.5 percent in June, both indicating growth at a slower rate than in May. Fourteen non-manufacturing industries reported increased activity in June. Members' comments in June are mostly positive about business conditions. The overall indication in June is continued economic growth in the non-manufacturing sector at a faster pace than in May."

Top Performing Industries

The 14 industries reporting growth in June — listed in order — are: Construction; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Other Services*; Accommodation & Food Services; Finance & Insurance; Educational Services; Public Administration; Utilities; Retail Trade; Management of Companies & Support Services; Information; Health Care & Social Assistance; and Wholesale Trade. There are no industries reporting decreased activity from May to June.

What Respondents are Saying:

"Business remains steady and as predicted." (Construction)

"General business is on the rise with good rates holding through the Q2 period." (Real Estate, Rental & Leasing)

"Although business this month is better than last month, business in 2007 has been worse than business in 2006." (Retail Trade)

"In general business is stable." (Agriculture, Forestry, Fishing & Hunting)

"Fuel prices remain high with many vendors adding a fuel surcharge." (Professional, Scientific & Technical Services)