ISM(R) 's Non-Manufacturing New Orders Index grew in July for the 60th consecutive month at a faster rate. The index registered 64.9 percent, an increase of 3.7 percentage points from the June reading of 61.2 percent. This month's New Orders Index is the highest reading since August 2005 when it registered 65.3 percent. Comments from respondents include: "Increased demand for services" and "New product placements."

The 14 industries reporting growth of new orders in July -- listed in order -- are: Educational Services; Mining; Real Estate, Rental & Leasing; Retail Trade; Health Care & Social Assistance; Public Administration; Construction; Management of Companies & Support Services; Finance & Insurance; Professional, Scientific & Technical Services; Information; Transportation & Warehousing; Wholesale Trade; and Accommodation & Food Services. The two industries reporting contraction of new orders in July are: Other Services; and Utilities.

New Orders %Higher %Same %Lower Index

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Jul 2014 32 59 9 64.9

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Jun 2014 31 59 10 61.2

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May 2014 36 54 10 60.5

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Apr 2014 33 55 12 58.2

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Employment

Employment activity in the non-manufacturing sector grew in July for the fifth consecutive month. ISM(R) 's Non-Manufacturing Employment Index registered 56 percent, which reflects an increase of 1.6 percentage points when compared to June's reading of 54.4 percent. Thirteen industries reported increased employment, and threeindustries reported decreased employment. Comments from respondents include: "Employment ramp-up" and "Positions eliminated during the Great Recession are now being filled."

The 13 industries reporting an increase in employment in July -- listed in order -- are: Other Services; Construction; Wholesale Trade; Public Administration; Management of Companies & Support Services; Retail Trade; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Professional, Scientific & Technical Services; Educational Services; Information; Transportation & Warehousing; and Finance & Insurance. The three industries reporting a reduction in employment in July are: Mining; Health Care & Social Assistance; and Utilities.

Employment %Higher %Same %Lower Index

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Jul 2014 26 64 10 56.0

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Jun 2014 29 60 11 54.4

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May 2014 26 61 13 52.4

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Apr 2014 21 68 11 51.3

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Supplier Deliveries

The Supplier Deliveries Index registered 51.5 percent in July, 0.5 percentage point higher than the 51 percent registered in June. A reading above 50 percent indicates slower deliveries, while a reading below 50 percent indicates faster deliveries.

The six industries reporting slower deliveries in July -- listed in order -- are: Educational Services; Accommodation & Food Services; Construction; Arts, Entertainment & Recreation; Retail Trade; and Professional, Scientific & Technical Services. The three industries reporting faster deliveries in July are: Transportation & Warehousing; Information; and Finance & Insurance. Nine industries reported no change in supplier deliveries in July compared to June.

Supplier Deliveries %Slower %Same %Faster Index

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Jul 2014 7 89 4 51.5

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Jun 2014 6 90 4 51.0

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May 2014 5 90 5 50.0

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Apr 2014 5 91 4 50.5

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Inventories

ISM(R) 's Non-Manufacturing Inventories registered 51 percent in July, which is 2.5 percentage points lower than the 53.5 percent that was reported in June. Of the total respondents in July, 28 percent indicated they do not have inventories or do not measure them. Comments from respondents include: "Depletion of stock on hand to improve cash flow" and "Consumed as soon as we can get them."

The eight industriesreporting an increase in inventories in July -- listed in order -- are: Mining; Transportation & Warehousing; Accommodation & Food Services; Utilities; Real Estate, Rental & Leasing; Retail Trade; Health Care & Social Assistance; and Finance & Insurance. The six industries reporting decreases in inventories in July -- listed in order -- are: Other Services; Arts, Entertainment & Recreation; Management of Companies & Support Services; Information; Professional, Scientific & Technical Services; and Wholesale Trade.

Inventories %Higher %Same %Lower Index

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Jul 2014 18 66 16 51.0

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Jun 2014 19 69 12 53.5

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May 2014 22 67 11 55.5

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Apr 2014 22 67 11 55.5

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Prices

Prices paid by non-manufacturing organizations for purchased materials and services increased in July for the 58th consecutive month. ISM(R) 's Non-Manufacturing Prices Index for July registered 60.9 percent, 0.3 percentage point lower than the 61.2 percent reported in June. The percentage of respondents reporting higher prices is 25 percent, the percentage indicating no change in prices paid is 70 percent, and 5 percent of the respondents reported lower prices.

Thirteen non-manufacturing industries reported an increase in prices paid during the month of July, in the following order: Arts, Entertainment & Recreation; Utilities; Accommodation & Food Services; Mining; Wholesale Trade; Finance & Insurance; Construction; Retail Trade; Real Estate, Rental & Leasing; Management of Companies & Support Services; Transportation & Warehousing; Health Care & Social Assistance; and Professional, Scientific & Technical Services. The two industries reporting a decrease in prices paid for the month of July are: Agriculture, Forestry, Fishing & Hunting; and Information.

Prices %Higher %Same %Lower Index

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Jul 2014 25 70 5 60.9

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Jun 2014 25 72 3 61.2

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May 2014 27 68 5 61.4

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Apr 2014 31 65 4 60.8

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NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report.

Backlog of Orders

ISM(R) 's Non-Manufacturing Backlog of Orders Index grew in July for the third consecutive month. The index registered 53 percent, which is the same percentage reported in June. Of the total respondents in July, 45 percent indicated they do not measure backlog of orders.

The seven industries reporting an increase in order backlogs in July -- listed in order -- are: Health Care & Social Assistance; Transportation & Warehousing; Real Estate, Rental & Leasing; Finance & Insurance; Construction; Accommodation & Food Services; and Professional, Scientific & Technical Services. The five industries reporting a decrease in order backlogs in July are: Other Services; Utilities; Information; Public Administration; and Wholesale Trade.

Backlog of Orders %Higher %Same %Lower Index

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Jul 2014 13 80 7 53.0

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Jun 2014 17 72 11 53.0

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May 2014 17 74 9 54.0

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Apr 2014 14 70 16 49.0

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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 grew in July for the fourth consecutive month. The New Export Orders Index for July registered 53 percent, which is 2 percentage points lower than the 55 percent reported in June. Of the total respondents in July, 71 percent indicated they either do not perform, or do not separately measure, orders for work outside of the United States.

The four industries reporting an increase in new export orders in July are: Utilities; Construction; Other Services; and Professional, Scientific & Technical Services. The two industries reporting a decrease in export orders in July are: Arts, Entertainment & Recreation; and Information. Nine industries reported no change in export orders in July compared to June.

New Export Orders %Higher %Same %LowerIndex

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Jul 2014 11 84 5 53.0

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Jun 2014 17 76 7 55.0

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May 2014 12 82 6 53.0

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Apr 2014 23 68 9 57.0

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Imports

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August 05, 2014 10:15 ET (14:15 GMT)

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