New Orders

ISM''s Non-Manufacturing New Orders Index contracted for the second consecutive month in February. The index increased 6.1 percentage points to 49.6 percent from the seasonally adjusted 43.5 percent registered in January. Comments from respondents include: """"Lagging sales""""; """"Typically slow period, but slower than normal""""; and """"Increased traffic.""""

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

Employment

Employment activity in the non-manufacturing sector contracted in February. ISM''s Non-Manufacturing Employment Index for February registered 46.9 percent, a 3 percentage point increase from the seasonally adjusted 43.9 percent reported in January. Six industries reported increased employment, 6 industries reported a decrease, and 6 industries indicated employment is unchanged from January. Comments from respondents include: """"Not replacing retirees or voluntary departures""""; """"Filled budgeted positions""""; and """"Hiring freeze still in place.""""

The industries reporting growth in employment in February are: Other Services*; Agriculture, Forestry, Fishing & Hunting; Mining; Management of Companies & Support Services; Information; and Professional, Scientific & Technical Services. The industries reporting a reduction in employment in February are: Accommodation & Food Services; Wholesale Trade; Public Administration; Educational Services; Construction; and Finance & Insurance.

Supplier Deliveries

The rate of supplier deliveries remained unchanged in February with the index registering 50 percent. A reading above 50 percent indicates slower deliveries.

The industries reporting slowing in supplier deliveries in February are: Real Estate, Rental & Leasing; Health Care & Social Assistance; Retail Trade; Professional, Scientific & Technical Services; Wholesale Trade; and Educational Services. The industries reporting faster supplier deliveries in February are: Utilities; Management of Companies & Support Services; Information; and Public Administration.

Inventories

ISM''s Non-Manufacturing Inventories Index registered 50 percent in February, indicating that inventory levels were unchanged in February when compared to January. Of the total respondents in February, 28 percent indicated they do not have inventories or do not measure them. Comments from members include: """"Purposeful reduction""""; """"Shedding inventory due to lower volume""""; and """"Based on business trends, need less stock.""""

The industries reporting increases in inventories in February are: Real Estate, Rental & Leasing; Other Services*; Mining; Construction; Health Care & Social Assistance; and Information. The industries reporting decreases in inventories in February are: Arts, Entertainment & Recreation; Retail Trade; Utilities; Finance & Insurance; Public Administration; and Management of Companies & Support Services.

Prices

Prices paid by non-manufacturing organizations for purchased materials and services increased in February for the 57th consecutive month. ISM''s Non-Manufacturing Prices Index for February registered 67.9 percent, 2.8 percentage points lower than January''s seasonally adjusted index of 70.7 percent. In February, the percentage of respondents reporting higher prices remained the same at 41 percent. The percentage indicating no change in prices paid remained the same at 54 percent. The percentage of respondents noting lower prices remained the same at 5 percent.

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

Backlog of Orders

ISM''s Non-Manufacturing Backlog of Orders Index contracted in February for the sixth consecutive month, registering 49.5 percent, 3.5 percentage points higher than the 46 percent reported in January. Of the total respondents in February, 36 percent indicated they do not measure backlog of orders.

The industries reporting an increase in order backlogs in February are: Information; Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Other Services*; Utilities; and Health Care & Social Assistance. The industries reporting lower backlog of orders in February are: Management of Companies & Support Services; Educational Services; Finance & Insurance; Professional, Scientific & Technical Services; Retail Trade; Public Administration; Wholesale Trade; and Transportation & Warehousing.

New Export Orders

Orders and requests for services and other non-manufacturing activities to be provided outside of the United States by domestically based personnel contracted for the month of February. The New Export Orders Index for February registered 46.5 percent, compared to January''s index of 52 percent. Of the total respondents in February, 68 percent indicated they either do not perform, or do not separately measure, orders for work outside of the United States.