--US May NAPM non-mfg business activity index 46.6 vs Apr 47.1
--US May NAPM non-mfg employment index 46.6 vs Apr's 46.7
--US May NAPM non-mfg new orders index 48.6 vs Apr's 45.9
--US May NAPM non-mfg price index 59.5 vs Apr's 59.5

New York, June 5 (BridgeNews) - The National Association of Purchasing Management's index of non-manufacturing business activity fell to 46.6 in May from 47.1 in April, the NAPM reported Wednesday.
* * * The monthly report, which is a counterpart to NAPM's widely watched monthly index of manufacturing activity, also said the employment index inched down to 46.6 from 46.7. The decline was the lowest value recorded since the survey began in July 1997 and also marked the third consecutive drop on a monthly basis, NAPM said.
The inventory sentiment index edged down to 63.5 from 64.0 in May, while the inventory change index rise to 47.5 from 45.5.
The prices index remained unchanged at 59.5 in May, marking the third month the index stood at that level.
"Overall in May, non-manufacturing industries' business continued to contract with both business activity and the volume of new orders declining," said Ralph Kauffman, chair of the NAPM's non-manufacturing business survey committee, in a release.
However, "on a positive note, both new orders and order backlogs decreased at a slower rate in May than in April," Kauffman added. A number above 50 is considered a sign of expansion in the non- manufacturing economy. A number below that level is seen as indicating a slowing in the non-manufacturing economy.
The purchasing managers' report is a survey of more than 370 purchasing and supply managers from over 60 different sectors representing industries including agriculture, forestry and fisheries, mining, construction, transportation, communications, electric, gas and sanitary services, wholesale trade, retail trade, finance, insurance and real estate, services and public administration.
NAPM's manufacturing index is closely followed by financial markets and Federal Reserve Chairman Alan Greenspan because it provides early indications of developments in the manufacturing sector of the economy. The NAPM non-manufacturing index also may receive considerable attention in financial markets in the future because of the growing importance of the service sector in the economy.
Below is a list of all the indexes for May, April and March:

-------------------May April March
Business Activity 46.6 47.1 50.3
New Orders 48.6 45.9 52.2
Backlog of Orders 46.5 44.0 47.5
New Export Orders 48.5 55.5 49.5
Inventory Change 47.5 45.5 49.0
Inventory Sentiment 63.5 64.0 69.0
Imports 48.5 49.3 48.1
Prices 59.5 59.5 59.5
Employment 46.6 46.7 49.4
Supplier Deliveries 52.0 51.0 50.5