The following is an unedited copy of the press release from Institute for Supply Management released on October 5, 2005.

September Non-Manufacturing ISM Report On Business®

Business Activity at 53.3%

New Orders Index Down 9.2 Points to 56.6%; Prices Index Up 14.3 points to 81.4%

New Export Orders Index Down 8.5 points to 55%; Employment Index Down 4.7 Points to 54.9%

(Tempe, Arizona) – Business activity in the non-manufacturing sector increased in September 2005, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business®.

The report was issued today by Ralph G. Kauffman, Ph.D., C.P.M., chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee and coordinator of the Supply Chain Management Program, University of Houston-Downtown.
""Non-manufacturing business activity increased for the 30th consecutive month in September,"" Kauffman said. He added, ""Business Activity increased at a slower rate in September than in August. New Orders, Employment, New Export Orders and Imports also increased at slower rates.

Many members' comments expressed concern about the continuing increase in oil and gas prices as well as Hurricane Katrina, and their impact on prices and economic activity. Only eight of 17 non-manufacturing industry sectors report increased activity in September compared to 13 that reported increased activity in August.

There were reports of increased activity regarding construction and construction-related items. The overall indication is continued economic growth in the non-manufacturing sector in September, but at a slower rate of increase than in August.""

TOP PERFORMING INDUSTRIES

The eight industries reporting growth in September – listed in order – are: Construction; Communication; Mining; Insurance; Retail Trade; Utilities; Health Services; and Wholesale Trade. The three industries reporting activity the same as last month are: Transportation; Other Services*; and Legal Services. The six industries reporting decreased activity from August to September are: Agriculture; Entertainment; Real Estate; Business Services; Finance & Banking; and Public Administration.

WHAT RESPONDENTS ARE SAYING

""Jobs being rushed to beat higher prices."" (Retail Trade)

""Concerned with possible shortages in utility products in the near future; for example, wood poles, electric wire, transformers, etc. as they may be diverted to the states affected by the hurricane."" (Utilities)

""Obvious concerns about the availability and prices of raw materials affected by Hurricane Katrina."" (Business Services)

""Aggressive energy pre-purchase strategy leaves our operations prepared for winter business, but will customers be ready for travel costs?"" (Entertainment)

""Lower inventories – working toward fiscal year-end. Overall patient activity continues high at all of our units."" (Health Services)

""Energy concerns are top of mind with everyone from our manufacturing suppliers to transportation. Costs are on the rise in almost all sectors due to energy that seems out of control."" (Retail Trade)