NEW YORK (MktNews) - Business activity in the U.S. non-manufacturing sectorcontinued to fall in April, with firms reporting continued layoffs, shrinking neworders and fewer order backlogs, according to Ralph Kauffman, chair of theNational Association of Purchasing Management's non-manufacturing survey. "This month our members reported decreased inventories for the sixthconsecutive month and also indicated the same rate of increase (59.5 percent) asin March in the prices they pay for their purchases. Employment declined for thesecond consecutive month, with the Employment Index reaching its lowest levelsince inception of NAPM's non-manufacturing business survey in July 1997,"Kauffman said. The April non-manufacturing NAPM index ticked down to 47.1 from 50.3 inMarch. A year ago the index was 60.0. A reading above the benchmark of 50.0indicates growing business activity. Additionally, signaling the sector's waning need for workers, the Aprilemployment index fell to 46.7 from 49.4 in March. A year ago, the index was 54.5. "The employment index is the lowest in the report's history and firm's arereducing employees at a faster rate ... we expect to see more employmentreductions going forward," Kauffman explained in a conference call immediatelyafter the release of the report. Elsewhere, Kauffman added that new orders slipped to 45.9 from 52.2 inMarch. A year ago the index was 60.2. The backlogs index dropped to 44.0 from47.5, and prices remained unchanged at 59.5, Kauffman explained. "The drop in new orders indicates that further cuts [in the indexes] are on theway," he said. The inventory change index fell on the month, to 45.5 from 49.0 while andinventory sentiment fell to 64.0 from 69.0. "Non-manufacturers reported inventory levels are high in transportation andutilities," Kauffman added. The supplier deliveries index fell to 51.0 from 50.5 in March. The new export orders index posted a 55.5 in April versus 49.5 in March,import orders were 49.3 versus 48.1 in March.