For the first time since 2004, admission of international students to U.S. graduate schools has declined, and students from India and South Korea are applying in significantly fewer numbers as well, according to a report (pdf) released today by the Council of Graduate Schools.
Admissions from prospective international students declined by 3 percent from 2008 to 2009, and applications from India and South Korea fell by 12 percent and 9 percent, respectively.
“The entire global economy has got to have played a part in what’s happening for fall of ’09,” said Nathan Bell, the council’s research director.

Virginia Tech in Blacksburg is still doing well, in spite of the negative publicity generated by the terrible mass shootings there in 2007.  The university
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saw increases or less significant declines in applications from areas of the world that have declined overall in application numbers. The university had an 8 percent increase in South Korean applications, for instance, besting the average by 17 percentage points.

via News: International Admissions Fall – Inside Higher Ed.
The breakdown of the statistics is particularly interesting.  Applications were up by 4% for the 2008-09 Academic Year, whereas offers where down by 3%.  Moreover, he applications are broken down regionally and in no region did the percentage change in number of applications correspond with the percentage change in the number of offers.   For example, for the 2008/09 academic year, applications from China were up by 14%, but applications from S. Korea the were down by 9%.  On the other hand, offers to Chinese students were up by 13%, and to Indian students they were down by 16%.
The really The biggest discrepency is between applications and offers to scholars from the Middle East and Turkey.  In 2008/09, applications were up by 22%, but admissions only by 10%.  I have no explanation.