ISM''s Non-Manufacturing Business Activity Index in April registered 50.9 percent, indicating a decrease of 1.3 percentage points when compared to the 52.2 percent registered in March. Eight industries reported increased business activity, and five industries reported decreased activity for the month of April. Five industries reported no change from March. Comments from respondents include: """"Increased customer demand""""; """"Ramping up for seasonal work""""; and """"More requests for services, especially training.""""

The industries reporting growth of business activity in April are: Mining; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Public Administration; Wholesale Trade; Professional, Scientific & Technical Services; Educational Services; and Information. The industries reporting decreased business activity in April are: Other Services*; Accommodation & Food Services; Health Care & Social Assistance; Finance & Insurance; and Management of Companies & Support Services.

New Orders

ISM''s Non-Manufacturing New Orders Index grew in April for the second consecutive month. The index decreased 0.1 percentage point to 50.1 percent from the 50.2 percent registered in March. Comments from respondents include: """"Continued growth activity""""; """"Additional business with some key existing customers""""; and """"Increased demand.""""

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

Employment

Employment activity in the non-manufacturing sector grew in April after three consecutive months of contraction. ISM''s Non-Manufacturing Employment Index for April registered 50.8 percent. This reflects an increase of 3.9 percentage points when compared to the 46.9 percent registered in March. Seven industries reported increased employment, five industries reported a decrease, and six industries indicated employment is unchanged from March. Comments from respondents include: """"Adding new positions""""; """"Continued growth of business""""; and """"Revenues are down so we are not filling most vacant positions.""""

The industries reporting growth in employment in April are: Mining; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Professional, Scientific & Technical Services; Construction; and Public Administration. The industries reporting a reduction in employment in April are: Other Services*; Transportation & Warehousing; Health Care & Social Assistance; Finance & Insurance; and Wholesale Trade.

Supplier Deliveries

Supplier deliveries were slower in April with the index registering 56 percent. A reading above 50 percent indicates slower deliveries.

The industries reporting slowing in supplier deliveries in April are: Other Services*; Professional, Scientific & Technical Services; Retail Trade; Wholesale Trade; Accommodation & Food Services; Health Care & Social Assistance; and Educational Services. The one industry reporting faster supplier deliveries in April is Management of Companies & Support Services.

Inventories

ISM''s Non-Manufacturing Inventories Index registered 47 percent in April, indicating that inventory levels contracted in April when compared to March. Of the total respondents in April, 29 percent indicated they do not have inventories or do not measure them. Comments from members include: """"Obsolete inventory reduction efforts""""; """"Conserving cash""""; and """"Reducing the number of SKU''s.""""

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

Prices

Prices paid by non-manufacturing organizations for purchased materials and services increased in April for the 59th consecutive month. ISM''s Non-Manufacturing Prices Index for April registered 72.1 percent, 1.3 percentage points higher than March''s index of 70.8 percent. In April, the percentage of respondents reporting higher prices is 60 percent. The percentage indicating no change in prices paid is 38 percent. The percentage of respondents noting lower prices is at 2 percent.

In April, all 18 industries reported an increase in prices paid in the following order: Agriculture, Forestry, Fishing & Hunting; Mining; Real Estate, Rental & Leasing; Educational Services; Management of Companies & Support Services; Accommodation & Food Services; Other Services*; Wholesale Trade; Utilities; Arts, Entertainment & Recreation; Construction; Information; Professional, Scientific & Technical Services; Transportation & Warehousing; Finance & Insurance; Public Administration; Retail Trade; and Health Care & Social Assistance.

Backlog of Orders

ISM''s Non-Manufacturing Backlog of Orders Index was unchanged at 50 percent in April after seven months of contraction. The index registered 2.5 percentage points higher than the 47.5 percent reported in March. Of the total respondents in April, 39 percent indicated they do not measure backlog of orders.

The industries reporting an increase in order backlogs in April are: Mining; Agriculture, Forestry, Fishing & Hunting; Educational Services; Accommodation & Food Services; Construction; Information; Finance & Insurance; and Public Administration. The industries reporting lower backlog of orders in April are: Management of Companies & Support Services; Retail Trade; Other Services*; Transportation & Warehousing; and Wholesale Trade.