(MENAFN) According to a report released by the Institute for Supply Management (ISM) on Monday, economic activity in the US services sector continued to expand in May, marking the fifth consecutive month of growth. However, the rate of expansion showed signs of slowing down compared to the previous month. The ISM's non-manufacturing Purchasing Managers' Index (PMI), also known as the ISM services PMI, recorded a reading of 50.3 percent, indicating a decline of 1.6 percentage points from April's reading of 51.9 percent.
Market analysts had anticipated a slightly higher reading of 51.8 percent for the index, which serves as a measure of the overall economic condition within the services sector. A reading above 50 percent suggests expansion, while a reading below 50 percent indicates contraction.
The ISM highlighted that the US services sector has experienced growth in 35 of the last 36 months, with the only contraction occurring in December. Notably, the index reached an all-time high of 69.1 percent in November 2021.
In the report, ISM Chair Anthony Nieves stated that eleven industries reported growth in May. However, he also noted a slowdown in the rate of growth for the services sector, expressing concerns regarding the broader economy. Nieves attributed this deceleration primarily to a decrease in employment and improvements in delivery times and capacity, which can be seen as a consequence of sluggish demand.
The findings of the ISM report suggest a moderation in the pace of expansion within the US services sector. While growth continues, the data underscores the impact of various factors such as labor market conditions and supply chain challenges on the sector's performance. Monitoring these indicators will be crucial in assessing the resilience and future trajectory of the US economy as it navigates through a period of evolving economic conditions and recovery.
MENAFN06062023000045014228ID1106394680
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.