US Services Sector Growth Lowest Since February 2014

The ISM Non-Manufacturing PMI index decreased 2.8 percentage points to 52.9 percent in May of 2016, below market expectations of 55.5. It is the lowest reading since February 2014 as business activity and new orders growth slowed and employment fell after rising in the previous two months.

The Non-Manufacturing Business Activity Index decreased to 55.1 percent, 3.7 percentage points lower than the April reading of 58.8 percent, reflecting growth for the 82nd consecutive month, at a slower rate in May. 

The New Orders Index registered 54.2 percent, 5.7 percentage points lower than the reading of 59.9 percent in April. 

The Employment Index decreased 3.3 percentage points to 49.7 percent from the April reading of 53 percent and indicates contraction after two consecutive months of growth. 

The Prices Index increased 2.2 percentage points from the April reading of 53.4 percent to 55.6 percent, indicating prices increased in May for the second consecutive month. 

The 14 non-manufacturing industries reporting growth in May — listed in order — are: Health Care & Social Assistance; Accommodation & Food Services; Utilities; Wholesale Trade; Agriculture, Forestry, Fishing & Hunting; Construction; Public Administration; Real Estate, Rental & Leasing; Management of Companies & Support Services; Information; Finance & Insurance; Retail Trade; Transportation & Warehousing; and Arts, Entertainment & Recreation. The four industries reporting contraction in May are: Mining; Other Services; Educational Services; and Professional, Scientific & Technical Services.

US Services Sector Growth Lowest Since February 2014

ISM | Joana Taborda |
6/3/2016 3:17:11 PM