US Service Sector Rises Further in May

The Institute for Supply Management index of non-manufacturing activity increased for the third straight month to 56.3 in May from 55.2 in April, as new orders and business activity surged.

The Non-Manufacturing Business Activity Index increased to 62.1 percent, which is 1.2 percentage points higher than the April reading of 60.9 percent, reflecting growth for the 58th consecutive month at a faster rate. 

The New Orders Index registered 60.5 percent, 2.3 percentage points higher than the reading of 58.2 percent registered in April. 

The Employment Index increased 1.1 percentage points to 52.4 percent from the April reading of 51.3 percent and indicates growth for the third consecutive month and at a faster rate. 

The Prices Index increased 0.6 percentage point from the April reading of 60.8 percent to 61.4 percent, indicating prices increased at a faster rate in May when compared to April. 

According to the NMI, 17 non-manufacturing industries reported growth in May. The majority of respondents' comments indicate that that there is steady incremental growth and project a positive outlook on business conditions. The 17 non-manufacturing industries reporting growth in May — listed in order — are: Construction; Wholesale Trade; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Public Administration; Finance & Insurance; Educational Services; Professional, Scientific & Technical Services; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Health Care & Social Assistance; Information; Other Services; Utilities; Retail Trade; Transportation & Warehousing; and Accommodation & Food Services. The only industry reporting contraction in May is Mining.

US Service Sector Rises Further in May

Institute for Supply Management | Joana Taborda |
6/4/2014 3:08:15 PM