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


(Tempe, Arizona) — Business activity in the non-manufacturing sector increased at a slower rate in September than in August, 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 54th consecutive month in September,"""" Nieves said. He added, """"The Business Activity Index decreased one percentage point to 54.8 percent for the month of September. New orders increased at a slower rate with the index registering 53.4 percent. The Employment Index increased to 52.7 percent in September. The Prices Index increased to 66.1 percent in September. Eight non-manufacturing industries reported increased activity in September. Members'' comments in September remain mixed about business conditions. The overall indication in September is continued economic growth in the non-manufacturing sector but at a slower pace than in August.""""

TOP PERFORMING INDUSTRIES

The eight industries reporting growth in September — listed in order — are: Health Care & Social Assistance; Retail Trade; Utilities; Transportation & Warehousing; Other Services*; Public Administration; Wholesale Trade; and Finance & Insurance. The five industries reporting decreased activity from August to September are: Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Management of Companies & Support Services; Information; and Professional, Scientific & Technical Services.

WHAT RESPONDENTS ARE SAYING ...

""""Business activity is flat due to budget concerns by customers globally. New business is limited globally and very price competitive."""" (Professional, Scientific & Technical Services)
""""August was a good month. September is holding its own."""" (Wholesale Trade)
""""Economic conditions suggest continued caution."""" (Educational Services)
""""Appears that we have reached equilibrium. Supply, demand, deliveries, and prices are much more predictable."""" (Mining)
""""The market is getting soft with the slow down in the housing market and will continue in the fourth quarter."""" (Construction)

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

Airfare (3); Computers and Accessories; Computer Servers; Corrugated Boxes; Envelopes; Fuel (8); Gasoline*; Hotel Costs (16); Paper (3); Paper Products; Personal Computers; Polyethylene; Printer Toner; Professional Services; Programmers; Pumps; Raw Materials; and Stainless Steel Products.

Commodities Down in Price

Gasoline (4) and Unleaded Gasoline.

SEPTEMBER 2007 NON-MANUFACTURING INDEX SUMMARIES

Business Activity

ISM''s Non-Manufacturing Business Activity Index in September registered 54.8 percent, indicating a slower rate of growth in business activity compared to August. The implication is that non-manufacturing business activity is continuing to increase for the 54th consecutive month. Eight industries reported increased business activity, and five industries reported decreased activity for the month of September.

The industries reporting growth of business activity in September are: Health Care & Social Assistance; Retail Trade; Utilities; Transportation & Warehousing; Other Services*; Public Administration; Wholesale Trade; and Finance & Insurance. The five industries reporting decreased activity from August to September are: Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Management of Companies & Support Services; Information; and Professional, Scientific & Technical Services.

New Orders

ISM''s Non-Manufacturing New Orders Index decreased to 53.4 percent in September from the 57 percent registered in August. This indicates continued expansion of new orders but at a slower rate than in August. Comments from members include: """"Customers being more conservative; competitive activity"""" and """"Acquired new projects.""""

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

Employment