The following is the un-edited press release from the Institute for Supply Management.


INDUSTRY PERFORMANCE (Based on the NMI)

The 13 industries reporting growth in May based on the new NMI composite index — listed in order — are: Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Construction; Information; Public Administration; Mining; Educational Services; Utilities; Wholesale Trade; Other Services; Professional, Scientific & Technical Services; Accommodation & Food Services; and Health Care & Social Assistance. The four industries reporting contraction in May are: Finance & Insurance; Management of Companies & Support Services; Transportation & Warehousing; and Agriculture, Forestry, Fishing & Hunting.

WHAT RESPONDENTS ARE SAYING ...

""""Business activity for the last month has increased slightly over the previous month."""" (Professional, Scientific & Technical Services)
""""High energy prices hurting the cost and sell side of our business."""" (Agriculture, Forestry, Fishing & Hunting)
""""Economic and market conditions continue to weigh down financial services industry in general. Spending and employment growth are on hold until overall market conditions show improvement."""" (Finance & Insurance)
""""The economy continues to be pressured by high fuel costs and food costs in general. The consumer seems to approach spending with trepidation given all the uncertainty in the markets."""" (Accommodation & Food Services)
""""Business is picking up."""" (Retail Trade)

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

Aircraft Fuel; Airfares (3); Air Freight; Aluminum; Aluminum Based Products; Beef (3); Bread; Bronze Bushings; Car Rentals (2); Carbon Steel; Cheese; Copier Paper (4); Copper; Copper Wire (3); Corrugated Packaging; Diesel Fuel (8); #1 Diesel Fuel; #2 Diesel Fuel; Energy Costs; Energy Related; Film — All Grades; Food and Beverage; Food Products; Fuel (16); Fuel Related; Fuel Surcharges; Gasoline (9); Gasoline Related; #2 Heating Fuel; Maintenance Services; Medical Supplies; Oil (3); Oil Based Products; Packaging Materials; Paper (7); Paper Products (3); Petroleum (3); Petroleum Products; Pipe Fittings; Plastics; Poly Products; Print Media; Purchasing Personnel; Rice; Roof Shingles; Shipping Costs (3); Stainless Steel Products; Steel (3); Steel Products; Textiles; 551 Toners; Transportation Costs; Trash Can Liners; Travel; and Wheat Based Products.’’

Commodities Down in Price

No commodities are reported down in price.

Commodities in Short Supply

Skilled Labor is the only commodity reported in short supply.

NMI (Non-Manufacturing Index)

Beginning with the January 2008 Non-Manufacturing Report On Business®, a composite index is now 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. May''s NMI at 51.7 percent indicates growth in the non-manufacturing sector for the second consecutive month. 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 May are: Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Construction; Information; Public Administration; Mining; Educational Services; Utilities; Wholesale Trade; Other Services; Professional, Scientific & Technical Services; Accommodation & Food Services; and Health Care & Social Assistance. The four industries reporting contraction in May are: Finance & Insurance; Management of Companies & Support Services; Transportation & Warehousing; and Agriculture, Forestry, Fishing & Hunting.

Business Activity

ISM''s Non-Manufacturing Business Activity Index in May registered 53.6 percent, indicating an increase of 2.7 percentage points when compared to the 50.9 percent registered in April. Eleven industries reported increased business activity, and three industries reported decreased activity for the month of May. Four industries reported no change from April. Comments from respondents include: """"New orders released by customers and additional requests for proposals for new projects""""; """"Increased demand for healthcare services""""; and """"End of budget year spend-out.""""

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

New Orders

ISM''s Non-Manufacturing New Orders Index grew in May for the third consecutive month. The index increased 3.5 percentage points to 53.6 percent from the 50.1 percent registered in April. Comments from respondents include: """"Orders released by customers""""; and """"New sales people, new customers.""""