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NMI (Non-Manufacturing Index) at 40.8%;March Non-Manufacturing ISM Report On Business®;Business Activity Index at 44.1%;New Orders Index at 38.8%;Employment Index at 32.3%;Some Industries Expect to Benefit From Economic Stimulus Package

Dépèche transmise le 3 avril 2009 par Business Wire

TEMPE, Ariz.--(BUSINESS WIRE)--Economic activity in the non-manufacturing sector contracted in March, 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. “The NMI (Non-Manufacturing Index) registered 40.8 percent in March, 0.8 percentage point lower than the 41.6 percent registered in February, indicating contraction in the non-manufacturing sector for the sixth consecutive month at a slightly faster rate. The Non-Manufacturing Business Activity Index increased 3.9 percentage points to 44.1 percent. The New Orders Index decreased 1.9 percentage points to 38.8 percent, and the Employment Index decreased 5 percentage points to 32.3 percent. The Prices Index decreased 9 percentage points to 39.1 percent in March, indicating a faster decrease in prices from February. According to the NMI, one non-manufacturing industry reported growth in March. Respondents remain concerned about the negative economic outlook and rising unemployment. A special question was asked with regard to the Economic Stimulus Package, and eight of the 18 industries expect to derive some benefit from the stimulus.” (See Special Questions section at the end of this release for more information.)

INDUSTRY PERFORMANCE (Based on the NMI)

The one industry reporting growth in March based on the NMI composite index is Real Estate, Rental & Leasing. The 17 industries reporting contraction in March — listed in order — are: Wholesale Trade; Management of Companies & Support Services; Educational Services; Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Utilities; Information; Retail Trade; Health Care & Social Assistance; Public Administration; Mining; Transportation & Warehousing; Accommodation & Food Services; Finance & Insurance; Other Services; Construction; and Arts, Entertainment & Recreation.

WHAT RESPONDENTS ARE SAYING …

• “We are definitely feeling the recession in terms of business activity on all fronts.” (Transportation & Warehousing)
• “The general state of the building industry is still very difficult with demand still low. We are starting to see some inflation in commodities and expect to have limited sales for this month.” (Construction)
• “Business is significantly down. Very few new projects. Many layoffs.” (Finance & Insurance)
• “Healthcare is also seeing a slowdown in volume.” (Health Care & Social Assistance)
• “Business is still flat and appears like it will remain that way through the second quarter of this year, causing cutbacks on purchases and increased requests for cost savings.” (Professional, Scientific & Technical Services)
• “Things are still slow due to the current economic conditions. Areas that are traditionally active this time of year are experiencing moderate activity levels.” (Wholesale Trade)

ISM NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM NON-MANUFACTURING AND ISM MANUFACTURING SURVEYS(a) MARCH 2009
Index		Non-Manufacturing												Manufacturing
	Series Index Mar.		Series Index Feb.		Percent Point Change		Direction		Rate of Change		Trend(b) (Months)		Series Index Mar.		Series Index Feb.		Percent Point Change
NMI/PMI		40.8		41.6		-0.8		Contracting		Faster		6		36.3		35.8		+0.5
Business Activity/ Production		44.1		40.2		+3.9		Contracting		Slower		6		36.4		36.3		+0.1
New Orders		38.8		40.7		-1.9		Contracting		Faster		6		41.2		33.1		+8.1
Employment		32.3		37.3		-5.0		Contracting		Faster		11		28.1		26.1		+2.0
Supplier Deliveries		48.0		48.0		0.0		Faster		Same		2		43.6		46.7		-3.1
Inventories		40.0		39.0		+1.0		Contracting		Slower		7		32.2		37.0		-4.8
Prices		39.1		48.1		-9.0		Decreasing		Faster		5		31.0		29.0		+2.0
Backlog of Orders		41.0		36.5		+4.5		Contracting		Slower		8		35.5		31.0		+4.5
New Export Orders		39.0		40.0		-1.0		Contracting		Faster		5		39.0		37.5		+1.5
Imports		37.0		39.0		-2.0		Contracting		Faster		5		33.0		32.0		+1.0
Inventory Sentiment		60.0		66.5		-6.5		Too High		Slower		142		N/A		N/A		N/A
Customers’ Inventories		N/A		N/A		N/A		N/A		N/A		N/A		54.0		51.0		+3.0

(a) Non-Manufacturing ISM Report On Business^®data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. Manufacturing ISM Report On Business^® data is seasonally adjusted for New Orders, Production, Employment, Supplier Deliveries and Inventories.

(b) Number of months moving in current direction

COMMODITIES REPORTED UP / DOWN IN PRICE, and IN SHORT SUPPLY

Commodities Up in Price

Fuel; Gasoline (19); IT Contractors; Plastic Resins; Shingles; and Transportation Costs.

Commodities Down in Price

Aluminum (2); Beef (7); Cellular Phone Service; Cheese (3); Coated Ground Wood; Computers/Laptops; Construction Services; Copper Products (5); Corrugated Boxes (3); Corrugated Products (2); #2 Diesel Fuel; Milk; Natural Gas; Plastic Bags; Polyethylene Films; Poly Products; PVC Pipe & Fittings; Stainless Steel; and Steel.

Commodities in Short Supply

Acetonitrile (3) is the only commodity reported in short supply.

Note: The number of consecutive months the commodity is listed is indicated after each item.

MARCH 2009 NON-MANUFACTURING INDEX SUMMARIES

NMI (Non-Manufacturing Index)

In March, the NMI registered 40.8 percent indicating contraction in the non-manufacturing sector at a slightly faster rate compared to February’s reading of 41.6 percent. 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.

NMI HISTORY

					Month						NMI											Month						NMI
					Mar 2009						40.8											Sep 2008						50.0
					Feb 2009						41.6											Aug 2008						50.4
					Jan 2009						42.9											Jul 2008						49.6
					Dec 2008						40.1											Jun 2008						48.8
					Nov 2008						37.4											May 2008						51.2
					Oct 2008						44.6											Apr 2008						51.9
					Average for 12 months – 45.8 High – 51.9 Low – 37.4

Business Activity

ISM’s Non-Manufacturing Business Activity Index in March registered 44.1 percent, an increase of 3.9 percentage points when compared to the 40.2 percent registered in February. Four industries reported increased business activity, and 8 industries reported decreased activity for the month of March. Six industries reported no change from February. Comments from respondents include: “No one is spending”; “Severe slowdown in new business”; and “Weak economy, projects on hold.”

The industries reporting growth of business activity in March are: Real Estate, Rental & Leasing; Finance & Insurance; Retail Trade; and Accommodation & Food Services. The industries reporting decreased business activity in March — listed in order — are: Wholesale Trade; Educational Services; Utilities; Information; Professional, Scientific & Technical Services; Health Care & Social Assistance; Public Administration; and Arts, Entertainment & Recreation.

Business Activity						%Higher					%Same					%Lower					Index
Mar 2009						24					44					32					44.1
Feb 2009						18					42					40					40.2
Jan 2009						19					43					38					44.2
Dec 2008						17					40					43					38.9

New Orders

ISM’s Non-Manufacturing New Orders Index contracted in March for the sixth consecutive month. The index registered 38.8 percent, which is a decrease of 1.9 percentage points from the 40.7 percent registered in February. Comments from respondents include: “Economy is forcing serious budget restraints”; “Customer requirements are not meeting forecasted anticipation”; and “Capital purchases have been curtailed.”

The one industry reporting growth of new orders in March is Real Estate, Rental & Leasing. The 14 industries reporting contraction of new orders in March — listed in order — are: Wholesale Trade; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Information; Educational Services; Professional, Scientific & Technical Services; Other Services; Transportation & Warehousing; Public Administration; Retail Trade; Health Care & Social Assistance; Accommodation & Food Services; Arts, Entertainment & Recreation; and Finance & Insurance.

New Orders						%Higher					%Same					%Lower					Index
Mar 2009						18					42					40					38.8
Feb 2009						16					47					37					40.7
Jan 2009						15					47					38					41.6
Dec 2008						17					40					43					38.9

Employment

Employment activity in the non-manufacturing sector contracted in March for the 14th time in the last 15 months. ISM’s Non-Manufacturing Employment Index for March registered 32.3 percent. This reflects a decrease of 5 percentage points when compared to the 37.3 percent registered in February. One industry reported increased employment, 14 industries reported decreased employment, and three industries reported unchanged employment for the month of March. Comments from respondents include: “Significant RIF [reduction in force] activity” and “Tightening up staff replacement processes due to lower volume.”

The industry reporting an increase in employment in March is Real Estate, Rental & Leasing. The industries reporting a reduction in employment in March — listed in order — are: Management of Companies & Support Services; Educational Services; Wholesale Trade; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Health Care & Social Assistance; Construction; Finance & Insurance; Public Administration; Accommodation & Food Services; Information; Professional, Scientific & Technical Services; Transportation & Warehousing; and Arts, Entertainment & Recreation.

Employment						%Higher					%Same					%Lower					Index
Mar 2009						7					50					43					32.3
Feb 2009						10					52					38					37.3
Jan 2009						6					53					41					34.4
Dec 2008						9					51					40					34.5

Supplier Deliveries

Supplier deliveries were faster in March, with the index registering 48 percent, the same as last month. A reading above 50 percent indicates slower deliveries.

The industries reporting slowing in supplier deliveries in March are: Information; Construction; Finance & Insurance; and Educational Services. The industries reporting faster supplier deliveries in March are: Utilities; Mining; Wholesale Trade; Professional, Scientific & Technical Services; and Transportation & Warehousing.

Supplier Deliveries						%Slower					%Same					%Faster					Index
Mar 2009						7					82					11					48.0
Feb 2009						8					80					12					48.0
Jan 2009						10					83					7					51.5
Dec 2008						8					80					12					48.0

Inventories

ISM’s Non-Manufacturing Inventories Index registered 40 percent in March, indicating that inventory levels contracted in March for the seventh consecutive month. Of the total respondents in March, 28 percent indicated they do not have inventories or do not measure them. Comments from members include: “Working down existing inventory”; “Keeping lower levels on hand, decreased on-hand levels by a one-month supply”; and “Continue to reduce inventory levels.”

The industries reporting an increase in inventories in March are: Accommodation & Food Services; Health Care & Social Assistance; Finance & Insurance; and Public Administration. The industries reporting decreases in inventories in March — listed in order — are: Wholesale Trade; Other Services; Real Estate, Rental & Leasing; Mining; Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; Arts, Entertainment & Recreation; Management of Companies & Support Services; Utilities; Construction; Information; and Retail Trade.

Inventories						%Higher					%Same					%Lower					Index
Mar 2009						9					62					29					40.0
Feb 2009						9					60					31					39.0
Jan 2009						16					51					33					41.5
Dec 2008						22					54					24					49.0

Prices

Prices paid by non-manufacturing organizations for purchased materials and services decreased in March for the fifth consecutive month after 65 consecutive months of increases. ISM’s Non-Manufacturing Prices Index for March registered 39.1 percent, 9 percentage points lower than the 48.1 percent reported in February. In March, the percentage of respondents reporting higher prices is 12 percent, the percentage indicating no change in prices paid is 59 percent, and 29 percent of the respondents reported lower prices.

In March, two industries reported an increase in prices paid in the following order: Arts, Entertainment & Recreation; and Health Care & Social Assistance. The 12 industries reporting prices as decreasing for the month of March — listed in order — are: Mining; Transportation & Warehousing; Accommodation & Food Services; Information; Retail Trade; Management of Companies & Support Services; Construction; Utilities; Wholesale Trade; Professional, Scientific & Technical Services; Educational Services; and Finance & Insurance.

Prices						%Higher					%Same					%Lower					Index
Mar 2009						12					59					29					39.1
Feb 2009						18					57					25					48.1
Jan 2009						13					55					32					42.5
Dec 2008						9					50					41					36.1

Backlog of Orders

ISM’s Non-Manufacturing Backlog of Orders Index contracted in March for the eighth consecutive month. The index registered 41 percent, 4.5 percentage points higher than the 36.5 percent reported in February. Of the total respondents in March, 44 percent indicated they do not measure backlog of orders.

Three industries reported an increase in order backlogs in March: Educational Services; Professional, Scientific & Technical Services; and Public Administration. The industries reporting lower backlog of orders in March — listed in order — are: Utilities; Retail Trade; Information; Wholesale Trade; Health Care & Social Assistance; Other Services; Transportation & Warehousing; and Constru