Non Manufacturing Expansion Unchanged in July

Tempe, AZ, September 6, 2007--Business activity in the non-manufacturing sector increased at the same rate in August as in July, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business.

"Non-manufacturing business activity increased for the 53rd consecutive month in August," according to the report issued today by Anthony Nieves, chair ISM Non-Manufacturing Business Survey Committee, and senior vice president — supply management for Hilton Hotels Corporation.

Nieves said, "The Business Activity Index remained the same at 55.8% for the month of August. New Orders increased at a faster rate and employment contracted in August. The New Orders Index increased to 57%, and the Prices Index decreased to 58.6% in August.

Ten non-manufacturing industries reported increased activity in August. Members' comments in August are mixed about business conditions. The overall indication in August is continued economic growth in the non-manufacturing sector at the same pace as in July."

Top Performing Industries

The 10 industries reporting growth in August — listed in order — are: Accommodation & Food Services; Real Estate, Rental & Leasing; Other Services*; Health Care & Social Assistance; Utilities; Public Administration; Professional, Scientific & Technical Services; Educational Services; Retail Trade; and Information. The five industries reporting decreased activity from July to August are: Management of Companies & Support Services; Arts, Entertainment & Recreation; Finance & Insurance; Wholesale Trade; and Construction.

What Respondents Are Saying:...

"We continue to be cautious but optimistic. Customer sentiment, fuels and the general conditions in the markets continue to cause concern. However, we are planning for new and increased business levels and are buying to support what we anticipate to be a turn." (Retail Trade)

"With the residential construction sector struggling, commercial construction has filled the void with a robust performance." (Public Administration)

"We are getting mixed messages on the economy. Looks like tight credit is slowing business down." (Professional, Scientific & Technical Services)

"Financial market conditions turned negative." (Finance & Insurance)

"The general state of the home building sector is still very low with material costs fluctuating monthly. Sales volume is trending down with less traffic over prior month. Labor rates are declining with some companies closing their doors due to little to no new business." (Construction)