The following is the un-edited press release from the Institute for Supply Management.


TOP PERFORMING INDUSTRIES

The 10 industries reporting growth in September — listed in order — are: Mining; Retail Trade; Educational Services; Health Care & Social Assistance; Utilities; Wholesale Trade; Public Administration; Professional, Scientific & Technical Services; Finance & Insurance; and Management of Companies & Support Services. The two industries reporting activity the same as last month are: Agriculture, Forestry, Fishing & Hunting; and Information. The six industries reporting decreased activity from August to September are: Transportation & Warehousing; Other Services*; Real Estate, Rental & Leasing; Construction; Arts, Entertainment & Recreation; and Accommodation & Food Services.

WHAT RESPONDENTS ARE SAYING ...

""""Market is still at the same slow pace as the last two months with the next two months leading to be the same. Materials and labor are plentiful and are assisting in controlling costs."""" (Construction)
""""Business conditions getting better on lower oil prices."""" (Agriculture, Forestry, Fishing & Hunting)
""""Generally optimistic about current economic activity."""" (Educational Services)
""""High interest rates are affecting loan volume."""" (Finance & Insurance)
""""Business activities lower in September 2006."""" (Information)
""""Our company profile remains positive with income reports and projections remaining above normal."""" (Wholesale Trade)

COMMODITIES REPORTED UP / DOWN IN PRICE, and IN SHORT SUPPLY
Commodities Up in Price

Aluminum (2); Aluminum Products; Beef; Brass (2); Bronze; Computer Products & Supplies; Copper (37); Copy Paper (8); Diesel Fuel*; Fiberglass Pipe/Products (2); Freight/Shipping/Transportation Costs (7); Hotel Costs (4); HVAC Equipment; Nickel; Office Supplies; Overnight Shipping; Paper (32); Paper Products (8); Plastic Bags; Poly Products (2); Roofing Materials (6); Rubber; Stainless Steel; Stainless Steel Products (2); and Wire & Cable.

Commodities Down in Price

Cardboard; Copper Products; Diesel Fuel*; # 1 Diesel Fuel; # 2 Diesel Fuel; Fuel; Gasoline; # 2 Heating Fuel; Labor; Lumber — Pine, Spruce and Treated (4); and Natural Gas.

Commodities in Short Supply

Aluminum (2); Cement/Concrete; Copper (2); Fiberglass Pipe/Fittings (2); Transformers (2); and Vaccines.

SEPTEMBER 2006 NON-MANUFACTURING INDEX SUMMARIES
Business Activity

ISM''s Non-Manufacturing Business Activity Index in September registered 52.9% compared to the 57% registered in August, indicating a slower rate of growth in business activity in September. The implication is that non-manufacturing business activity is continuing to increase for the 42nd consecutive month, but at a slower rate. The slower rate of growth indicated by this index is not reflected in some of the other indexes this month as evidenced by a 5.1% age point increase in the New Orders Index and a 2.2% age point increase in the Employment Index. This month, 10 sectors report increased business activity, six are reporting decreased activity, and two are indicating unchanged activity compared to August.

The industries reporting growth of business activity in September are: Mining; Retail Trade; Educational Services; Health Care & Social Assistance; Utilities; Wholesale Trade; Public Administration; Professional, Scientific & Technical Services; Finance & Insurance; and Management of Companies & Support Services. The six industries reporting contraction of business activity in September are: Transportation & Warehousing; Other Services; Real Estate, Rental & Leasing; Construction; Arts, Entertainment & Recreation; and Accommodation & Food Services.

New Orders

ISM''s Non-Manufacturing New Orders Index increased to 57.2% in September from the 52.1% registered in August. This indicates continued expansion of new orders. Comments from members include: """"New work starting up"""" and """"Some customers are looking at capital expenditures.""""

Industries reporting growth of new orders in September are: Mining; Retail Trade; Utilities; Health Care & Social Assistance; Management of Companies & Support Services; Wholesale Trade; Educational Services; Information; Finance & Insurance; and Public Administration. The industries reporting contraction of new orders in September are: Other Services*; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Transportation & Warehousing; Construction; and Professional, Scientific & Technical Services.

Employment

Employment activity in the non-manufacturing sector increased at a faster rate in September compared to August. This was the 26th consecutive monthly increase in non-manufacturing employment. ISM''s Non-Manufacturing Employment Index for September is 53.6%, an increase of 2.2% age points from the 51.4% reported in August. Seven industries are reporting increased employment, seven are reporting a decrease, and four indicate employment is unchanged from August. Comments from respondents include: """"Continue to fill backlog of available positions""""; """"Prepping for new fiscal year""""; and """"Increase in business.""""