ISM''s Non-Manufacturing Business Activity Index in March registered 52.2 percent, indicating an increase of 1.4 percentage points when compared to the 50.8 percent registered in February. Eleven industries reported increased business activity, and five industries reported decreased activity for the month of March. Two industries reported no change from February. Comments from respondents include: """"Starting new projects""""; """"Customers releasing projects as well as successful bids on some new projects""""; """"Increased demand on existing projects""""; and """"Utility construction activity continues at a steady pace.""""

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

New Orders

ISM''s Non-Manufacturing New Orders Index grew in March after two consecutive months of contraction. The index increased 0.6 percentage point to 50.2 percent from the 49.6 percent registered in February. Comments from respondents include: """"New customers, seasonal increase""""; """"Increased admissions and lengths of stay""""; and """"Seeing increased orders for later this year.""""

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

Employment

Employment activity in the non-manufacturing sector contracted in March for the third consecutive month. ISM''s Non-Manufacturing Employment Index for March registered the same as February at 46.9 percent. Five industries reported increased employment, six industries reported a decrease, and seven industries indicated employment is unchanged from February. Comments from respondents include: """"Layoffs for general cost cutting""""; """"Hiring freeze due to budget constraints""""; and """"We have a few less employees and are not hiring presently.""""

The industries reporting growth in employment in March are: Real Estate, Rental & Leasing; Accommodation & Food Services; Construction; Educational Services; and Professional, Scientific & Technical Services. The industries reporting a reduction in employment in March are: Other Services; Finance & Insurance; Wholesale Trade; Public Administration; Information; and Retail Trade.

Supplier Deliveries

Supplier deliveries were faster in March with the index registering 49 percent. A reading above 50 percent indicates slower deliveries.

The industries reporting slowing in supplier deliveries in March are: Agriculture, Forestry, Fishing & Hunting; Mining; Other Services*; Management of Companies & Support Services; Health Care & Social Assistance; and Public Administration. The industries reporting faster supplier deliveries in March are: Wholesale Trade; Transportation & Warehousing; Utilities; Educational Services; Finance & Insurance; Professional, Scientific & Technical Services; and Information.

Inventories

ISM''s Non-Manufacturing Inventories Index registered 51.5 percent in March, indicating that inventory levels grew in March when compared to February. Of the total respondents in March, 27 percent indicated they do not have inventories or do not measure them. Comments from members include: """"Stock piling paper inventory to minimize effect of future price increase""""; """"Lowering inventories to save cash""""; and """"Phase in of new machines to replace older ones — in inventory until deployment schedule is completed.""""

The industries reporting increases in inventories in March are: Real Estate, Rental & Leasing; Information; Management of Companies & Support Services; Other Services*; Transportation & Warehousing; Professional, Scientific & Technical Services; Public Administration; and Retail Trade. The industries reporting decreases in inventories in March are: Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; Accommodation & Food Services; and Health Care & Social Assistance.

Prices

Prices paid by non-manufacturing organizations for purchased materials and services increased in March for the 58th consecutive month. ISM''s Non-Manufacturing Prices Index for March registered 70.8 percent, 2.9 percentage points higher than February''s index of 67.9 percent. In March, the percentage of respondents reporting higher prices is 53 percent. The percentage indicating no change in prices paid is 45 percent. The percentage of respondents noting lower prices is at 2 percent.

In March, 17 out of 18 industries reported an increase in prices paid in the following order: Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Accommodation & Food Services; Construction; Utilities; Management of Companies & Support Services; Educational Services; Public Administration; Mining; Professional, Scientific & Technical Services; Other Services*; Retail Trade; Finance & Insurance; Information; Transportation & Warehousing; Wholesale Trade; and Health Care & Social Assistance. One industry, Agriculture, Forestry, Fishing & Hunting, reported prices unchanged in March.

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 indicated growth for the month of March. The New Export Orders Index for March registered 55 percent, compared to February''s index of 46.5 percent. Of the total respondents in March, 69 percent indicated they either do not perform, or do not separately measure, orders for work outside of the United States.

The industries reporting an increase in new export orders in March are: Information; Arts, Entertainment & Recreation; Professional, Scientific & Technical Services; Mining; Other Services*; and Retail Trade. The industries reporting a decrease in export orders in March are: Management of Companies & Support Services; Transportation & Warehousing; Accommodation & Food Services; and Finance & Insurance.