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 faster rate in April 2007, 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 49th consecutive month in April,"""" Nieves said. He added, """"Business Activity, New Orders and Employment increased at a faster rate in April than in March. The Prices Index increased slightly this month to 63.5%. Thirteen non-manufacturing industries reported increased activity in April. Members'' comments in April are mixed about business conditions. There is continued concern with fuel and energy costs. The overall indication in April is continued economic growth in the non-manufacturing sector at a faster pace than in March.""""

TOP PERFORMING INDUSTRIES

The 13 industries reporting growth in April — listed in order — are: Arts, Entertainment & Recreation; Accommodation & Food Services; Transportation & Warehousing; Utilities; Information; Public Administration; Other Services*; Retail Trade; Real Estate, Rental & Leasing; Finance & Insurance; Construction; Educational Services; and Health Care & Social Assistance. The two industries reporting decreased activity from March to April are: Wholesale Trade; and Professional, Scientific & Technical Services.

WHAT RESPONDENTS ARE SAYING ...

""""Progressive improvement in the business cycle."""" (Transportation & Warehousing)
""""We are showing signs of recovery from bad news. Transactions are increasing faster than our normal seasonal increase."""" (Accommodation & Food Services)
""""Concerned about the rapid increase in energy cost."""" (Professional, Scientific & Technical Services)
""""The level of business is maintaining an even level at this time. Capital projects are ramping upwards."""" (Educational Services)
""""Sales in the first three months of the year are slower than expected while pressure to lower prices is increasing."""" (Wholesale Trade)

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

Airfare (2); Aluminum; Cardboard; Construction Services; Copper Wire; Copy Paper; Electricity (3); #1 Diesel Fuel (2); #2 Diesel Fuel (2); Freight/Shipping (3); Fuel (3); Fuel Surcharges; Gasoline (6); Gasoline Related; Hotel Costs (11); Labor; LDPE Films; Nickel Material; Office Furniture; Paper (39); Paper Products; Petroleum; Petroleum Products; Stainless Steel Products; and Transportation.
Commodities Down in Price

Lumber — Pine, Spruce and Treated; and Computer Equipment.
Commodities in Short Supply

Construction Services/Contractors (2); Purchasing and Supply Professionals; and Tires.

APRIL 2007 NON-MANUFACTURING INDEX SUMMARIES

Business Activity

ISM''s Non-Manufacturing Business Activity Index in April registered 56 percent compared to the 52.4% registered in March, indicating a faster rate of growth in business activity in April. The implication is that non-manufacturing business activity is continuing to increase for the 49th consecutive month. Thirteen industries reported increased business activity, and two reported decreased activity for the month of April.

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

New Orders

ISM''s Non-Manufacturing New Orders Index increased to 55.5 percent in April from the 53.8 percent registered in March. This indicates continued expansion of new orders at a faster rate than in March. Comments from members include: """"Some of our new markets are picking up;"""" and """"Increased sales, proposal and prospect activity.""""

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

Employment