Comments from members include: "Continuedburn-off of inventory"; "Working to lower inventory investment dollars"; and"More effective procurement practices and inventory control processes." The four industries reporting an increase in inventories in June are: Mining;Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; and Utilities.The 11 industries reporting decreases in inventories in June - listed in order -are: Other Services; Educational Services; Transportation & Warehousing;Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; Professional,Scientific & Technical Services; Finance & Insurance; Retail Trade; Information;Public Administration; and Health Care & Social Assistance. Of the total respondents in June, 28 percent indicated they do not haveinventories or do not measure them. Supplier Deliveries%Slower%Same%FasterIndex Jun 2009 386 11 46.0May 2009 786 750.0Apr 2009 385 12 45.5Mar 2009 782 11 48.0 InventoriesISM`s Non-Manufacturing Inventories Index registered 45 percent in June,indicating that inventory levels contracted in June for the 10th consecutivemonth. The eight industries reportingfaster supplier deliveries in June are: Agriculture, Forestry, Fishing &Hunting; Management of Companies & Support Services; Real Estate, Rental &Leasing; Educational Services; Transportation & Warehousing; Retail Trade;Information; and Wholesale Trade. Employment%Higher%Same%LowerIndex Jun 200913 64 2343.4May 200913 58 2939.0Apr 200910 58 3237.0Mar 2009750 4332.3 Supplier DeliveriesThe Supplier Deliveries Index registered 46 percent in June, indicating supplierdeliveries were faster than in May, when the index registered 50 percent (areading at 50 percent indicates an equal balance of non-manufacturingrespondents reporting slower and faster deliveries from their suppliers) Areading above 50 percent indicates slower deliveries No industry reported slower deliveries in May. Theindustries reporting a reduction in employment in June - listed in order - are:Educational Services; Wholesale Trade; Professional, Scientific & TechnicalServices; Retail Trade; Public Administration; Information; Health Care & SocialAssistance; and Other Services. Comments fromrespondents include: "Right-sizing staff to sales-run rates"; "Some corporatestaff reductions"; and "Layoffs due to slowdown." The industries reporting an increase in employment in June are: Real Estate,Rental & Leasing; Arts, Entertainment & Recreation; Agriculture, Forestry,Fishing & Hunting; Accommodation & Food Services; and Finance & Insurance.

Five industries reportedincreased employment, eight industries reported decreased employment, and fourindustries reported unchanged employment compared to May. New Orders%Higher%Same%LowerIndex Jun 200929 45 2648.6May 200923 51 2644.4Apr 200924 54 2247.0Mar 200918 42 4038.8 EmploymentEmployment activity in the non-manufacturing sector contracted in June for the17th time in the last 18 months. ISM`s Non-Manufacturing Employment Index forJune registered 43.4 percent. This reflects an increase of 4.4 percentage pointswhen compared to the 39 percent registered in May.

The eight industries reporting contraction of neworders in June - listed in order - are: Mining; Agriculture, Forestry, Fishing &Hunting; Wholesale Trade; Transportation & Warehousing; Professional, Scientific& Technical Services; Health Care & Social Assistance; Public Administration;and Other Services. Comments fromrespondents include: "Less restrictions on expenditures"; "In line with increasein customers"; and "Increased sales and prospect activity." The seven industries reporting growth of new orders in June - listed in order -are: Real Estate, Rental & Leasing; Arts, Entertainment & Recreation;Educational Services; Accommodation & Food Services; Construction; Information;and Finance & Insurance. The index registered 48.6 percent, which is an increase of4.2 percentage points from the 44.4 percent registered in May. Business Activity%Higher%Same%LowerIndexJun 2009 28 50 2249.8May 2009 20 52 2842.4Apr 2009 26 46 2845.2Mar 2009 24 44 3244.1 New OrdersISM`s Non-Manufacturing New Orders Index contracted in June for the ninthconsecutive month.

The industries reporting decreased business activity inJune - listed in order - are: Mining; Agriculture, Forestry, Fishing & Hunting;Transportation & Warehousing; Retail Trade; Wholesale Trade; Health Care &Social Assistance; Public Administration; and Other Services. Seven industries reported increased business activity, andeight industries reported decreased activity for the month of June Threeindustries reported no change from May. Comments from respondents include: "Newcapital projects"; "Economy may be improving slightly"; and "Increasing demand."The industries reporting growth of business activity in June - listed in order -are: Real Estate, Rental & Leasing; Accommodation & Food Services; Arts,Entertainment & Recreation; Finance & Insurance; Construction; Information; andEducational Services. NMI HISTORY Month NMI Month NMI Jun 200947.0Dec 200840.1 May 200944.0Nov 200837.4 Apr 200943.7Oct 200844.6 Mar 200940.8Sep 200850.0 Feb 200941.6Aug 200850.4 Jan 200942.9Jul 200849.6 Average for 12 months - 44.3High - 50.4 Low - 37.4Business ActivityISM`s Non-Manufacturing Business Activity Index in June registered 49.8 percent,an increase of 7.4 percentage points when compared to the 42.4 percentregistered in May. A reading above 50 percent indicates the non-manufacturing sectoreconomy is generally expanding; below 50 percent indicates the non-manufacturingsector is generally contracting.