Service Industries Index Rises Unexpectedly

Tempe, AZ, May 5, 2008--Service industries expanded unexpectedly last month, perhaps an indication that damaged from the housing slump and credit crisis may be moderating.

The Institute for Supply Management's index of non- manufacturing businesses, which make up almost 90 percent of the economy, rose to 52 from 49.6 the prior month. Readings greater than 50 signal growth.

The index was projected to fall back to 49..

The services measure contracted in the prior three months. The last time the index was less than 50 for at least 3 consecutive months was in 2001-2002.

The ISM index of new orders for non-manufacturing industries fell to 50.1 from 50.2 the prior month.