Service Sector Growth Slows

Tempe, AZ, August 3, 2007--Business activity in the non-manufacturing sector increased at a slower rate in July 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 52nd consecutive month in July," Nieves said. "Business activity, new orders and employment increased at a slower rate in July than in June. The Business Activity Index registered 55.8%, a decrease of 4.9%. The New Orders Index decreased to 52.8%, and the Prices Index decreased to 61.3% in July, both indicating growth at a slower rate than in June. Nine non-manufacturing industries reported increased activity in July. Members' comments in July are mixed about business conditions. The overall indication in July is continued economic growth in the non-manufacturing sector, but at a slower pace than in June."