The following is an unedited transcript of the news release from the Institute for Supply Management.


(Tempe, Arizona) — Economic activity in the non-manufacturing sector contracted in February, say the nation''s purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business.


TOP PERFORMING INDUSTRIES (Based on the NMI)

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

WHAT RESPONDENTS ARE SAYING ...

""""Business remains strong in 2008 despite signs of an economic downturn."""" (Professional, Scientific & Technical Services)
""""January was a very slow month and February has started off at the same pace."""" (Wholesale Trade)
""""Business drops significantly as we move away from the holiday season."""" (Retail Trade)
""""Weakness continues in both volume and pricing."""" (Agriculture, Forestry, Fishing & Hunting)
""""Financial services companies are beginning to stabilize from the effects of the sub prime market issues, but overall will continue to focus on business as usual by increasing productivity of current workforce and supply base and limit any increases at this time."""" (Finance & Insurance)

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

Bearings; Cleaning/Janitorial Products; Computer Supplies; Copier Paper; Corrugated; Cotton Products (2); Diesel Fuel (5); #2 Diesel Fuel (5); Food & Beverage; Fuel (13); Fuel Surcharges (2); Gasoline*(6); Medical Supplies; Office Furniture; Office Supplies; Paper (4); Plastic Products; Polyester and Polyester Products; Stainless Steel Products*; Steel Plate; Steel Products (2); and Sulfuric Acid.

Commodities Down in Price

Computer Accessories/Peripherals; Gasoline*; and Stainless Steel Products*.

Commodities in Short Supply

Coated Groundwood and Coated Paper.

NMI (Non-Manufacturing Index)

Beginning with the January 2008 Non-Manufacturing Report On Business®, a composite index is 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. February''s NMI at 49.3 percent indicates a contraction 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 February are: Real Estate, Rental & Leasing; Other Services; Agriculture, Forestry, Fishing & Hunting; Health Care & Social Assistance; Mining; Professional, Scientific & Technical Services; Utilities; and Construction. The industries reporting contraction in February are: Accommodation & Food Services; Transportation & Warehousing; Educational Services; Public Administration; Management of Companies & Support Services; Finance & Insurance; Retail Trade; Information; and Wholesale Trade.

Business Activity

ISM''s Non-Manufacturing Business Activity Index in February registered 50.8 percent, indicating an increase of 8.9 percentage points after a month of contraction in January when the index registered 41.9 percent. Seven industries reported increased business activity, and eight industries reported decreased activity for the month of February. Three industries reported no change from January. Comments from respondents include: """"Improving sales volume""""; """"Increased sales and proposal activity""""; and """"Increased demand for retail items we produce.""""

The industries reporting growth of business activity in February are: Real Estate, Rental & Leasing; Other Services*; Health Care & Social Assistance; Utilities; Professional, Scientific & Technical Services; Wholesale Trade; and Construction. The industries reporting decreased business activity in February are: Accommodation & Food Services; Mining; Transportation & Warehousing; Management of Companies & Support Services; Retail Trade; Educational Services; Finance & Insurance; and Information.