ISM: US service activity continues to grow in May
The activity in the United States services sector advanced for the fifth consecutive month in May, with the Purchase Managers' Index (PMI) coming in at 50.3%, 1.6 percentage points lower than in April and slightly lower than expected, the Institute for Supply Management (ISM) said in its report published on Monday.
The Business Activity Index stood at 51.5%, a decline of 0.5 percentage points compared to the previous month. The New Orders Index also decreased by 3.2 percentage points lower month-on-month to 52.9%. The Price Index dipped by 3.4 percentage points to 56.2%. Meanwhile, the Employment Index went into a contraction, dropping by 1.6 percentage points to 49.2%.
"There has been a pullback in the rate of growth for the services sector. This is due mostly to the decrease in employment. The majority of respondents indicate that business conditions are currently stable; however, there are concerns relative to the slowing economy," ISM Services Business Survey Committee Chair Anthony Nieves said.