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


NMI (Non-Manufacturing Index) at 52%

Business Activity Index at 50.9%
New Orders Index at 50.1%
Employment Index at 50.8%

(Tempe, Arizona) — Economic activity in the non-manufacturing sector expanded in April, 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. """"The NMI (Non-Manufacturing Index) increased 2.4 percentage points to 52 percent, indicating expansion after three consecutive months of contraction within the non-manufacturing sector for April 2008. The Non-Manufacturing Business Activity Index decreased 1.3 percentage points to 50.9 percent. The New Orders Index decreased 0.1 percentage point to 50.1 percent, and the Employment Index increased 3.9 percentage points to 50.8 percent. The Prices Index increased 1.3 percentage points to 72.1 percent in April, indicating a faster rate in price increases than in March. According to the NMI, 12 non-manufacturing industries reported growth in April. Members'' comments in April continue to be mixed and vary by industry. The inflationary pressures of rising fuel, energy and commodity prices are of major concern for members.""""

INDUSTRY PERFORMANCE (Based on the NMI)

The 12 industries reporting growth in April based on the new NMI composite index — listed in order — are: Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Agriculture, Forestry, Fishing & Hunting; Mining; Wholesale Trade; Public Administration; Educational Services; Construction; Utilities; Retail Trade; and Information. The six industries reporting contraction in April are: Other Services*; Transportation & Warehousing; Finance & Insurance; Accommodation & Food Services; Health Care & Social Assistance; and Management of Companies & Support Services.

WHAT RESPONDENTS ARE SAYING ...

""""The financial services sector continues to deal with global economic conditions that are impacting not only revenue and earnings, but also buying and sourcing strategies."""" (Finance & Insurance)
""""There is a general push by many suppliers to increase prices (by as much as 5 percent to 10 percent) based upon the market pressures of fuels and energy.""""(Health Care & Social Assistance)
""""Business levels and interest remain quite high; however, notice some price sensitivity in recent weeks."""" (Professional, Scientific & Technical Services)
""""Paper market remains strong."""" (Information)
""""First quarter has continued to be positive..."""" (Wholesale Trade)

COMMODITIES REPORTED UP / DOWN IN PRICE, and IN SHORT SUPPLY

Commodities Up in Price

Airfares (2); Alcohol; Beef (2); Car Rentals; Carbon Steel Pipe (2); Carbon Steel Plate; Coffee; Copier Paper (3); Copper Wire (2); Corn; Diesel Fuel (7); Eggs (2); Flour; Foodstuffs; Fresh Dairy; Fuel (15); Gasoline (8); Hay; Hotel Costs; IT Support; Milk; Natural Gas; Oil (2); Paper (6); Paper Products (2); Petroleum (2); Plastic Bags (2); Printed Forms and Papers; Shipping Costs (2); Steel (2); Wheat; and Wood Shavings.
Commodities Down in Price

Cheese is the only commodity reported down in price.

Commodities in Short Supply

No commodities are reported in short supply.

NMI (Non-Manufacturing Index)

Beginning with the January 2008 Non-Manufacturing Report On Business®, a composite index is now calculated as an indicator of the overall economic condition for the non-manufacturing sector. The NMI is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries. April''s NMI at 52 percent indicates growth in the non-manufacturing sector. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting.

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

Business Activity