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


INDUSTRY PERFORMANCE (Based on the NMI)

The one industry reporting growth in March based on the NMI composite index is Real Estate, Rental & Leasing. The 17 industries reporting contraction in March — listed in order — are: Wholesale Trade; Management of Companies & Support Services; Educational Services; Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Utilities; Information; Retail Trade; Health Care & Social Assistance; Public Administration; Mining; Transportation & Warehousing; Accommodation & Food Services; Finance & Insurance; Other Services; Construction; and Arts, Entertainment & Recreation.

WHAT RESPONDENTS ARE SAYING ...

""""We are definitely feeling the recession in terms of business activity on all fronts."""" (Transportation & Warehousing)
""""The general state of the building industry is still very difficult with demand still low. We are starting to see some inflation in commodities and expect to have limited sales for this month."""" (Construction)
""""Business is significantly down. Very few new projects. Many layoffs."""" (Finance & Insurance)
""""Healthcare is also seeing a slowdown in volume."""" (Health Care & Social Assistance)
""""Business is still flat and appears like it will remain that way through the second quarter of this year, causing cutbacks on purchases and increased requests for cost savings."""" (Professional, Scientific & Technical Services)
""""Things are still slow due to the current economic conditions. Areas that are traditionally active this time of year are experiencing moderate activity levels."""" (Wholesale Trade)

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

Fuel; Gasoline (19); IT Contractors; Plastic Resins; Shingles; and Transportation Costs.

Commodities Down in Price

Aluminum (2); Beef (7); Cellular Phone Service; Cheese (3); Coated Ground Wood; Computers/Laptops; Construction Services; Copper Products (5); Corrugated Boxes (3); Corrugated Products (2); #2 Diesel Fuel; Milk; Natural Gas; Plastic Bags; Polyethylene Films; Poly Products; PVC Pipe & Fittings; Stainless Steel; and Steel.

Commodities in Short Supply

Acetonitrile (3) is the only commodity reported in short supply.

NMI (Non-Manufacturing Index)

In March, the NMI registered 40.8 percent indicating contraction in the non-manufacturing sector at a slightly faster rate compared to February''s reading of 41.6 percent. 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.

Business Activity

ISM''s Non-Manufacturing Business Activity Index in March registered 44.1 percent, an increase of 3.9 percentage points when compared to the 40.2 percent registered in February. Four industries reported increased business activity, and 8 industries reported decreased activity for the month of March. Six industries reported no change from February. Comments from respondents include: """"No one is spending""""; """"Severe slowdown in new business""""; and """"Weak economy, projects on hold.""""

The industries reporting growth of business activity in March are: Real Estate, Rental & Leasing; Finance & Insurance; Retail Trade; and Accommodation & Food Services. The industries reporting decreased business activity in March — listed in order — are: Wholesale Trade; Educational Services; Utilities; Information; Professional, Scientific & Technical Services; Health Care & Social Assistance; Public Administration; and Arts, Entertainment & Recreation.

New Orders

ISM''s Non-Manufacturing New Orders Index contracted in March for the sixth consecutive month. The index registered 38.8 percent, which is a decrease of 1.9 percentage points from the 40.7 percent registered in February. Comments from respondents include: """"Economy is forcing serious budget restraints""""; """"Customer requirements are not meeting forecasted anticipation""""; and """"Capital purchases have been curtailed.""""

The one industry reporting growth of new orders in March is Real Estate, Rental & Leasing. The 14 industries reporting contraction of new orders in March — listed in order — are: Wholesale Trade; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Information; Educational Services; Professional, Scientific & Technical Services; Other Services; Transportation & Warehousing; Public Administration; Retail Trade; Health Care & Social Assistance; Accommodation & Food Services; Arts, Entertainment & Recreation; and Finance & Insurance.