ISM: Services Sector Grows in May
The Institute for Supply Management said its Non-Manufacturing Index (NMI) registered 53.7% in May, 0.6 percentage point higher than the 53.1% registered in April. This indicates continued growth at a slightly faster rate in the non-manufacturing sector.
A reading above 50% indicates the non-manufacturing sector economy is generally expanding; below 50% indicates the non-manufacturing sector is generally contracting.
In addition, economic activity in the non-manufacturing sector grew in May for the 41st consecutive month, ISM said.
The Non-Manufacturing Business Activity Index registered 56.5%, which is 1.5 percentage points higher than the 55% reported in April, reflecting growth for the 46th consecutive month. The New Orders Index increased by 1.5 percentage points to 56%, and the Employment Index decreased 1.9 percentage points to 50.1%, indicating growth in employment for the 10th consecutive month. The Prices Index decreased 0.1 percentage point to 51.1%, indicating prices increased at a slower rate in May when compared to April.
The 13 non-manufacturing industries reporting growth in May — listed in order — are: Accommodation & Food Services; Transportation & Warehousing; Arts, Entertainment & Recreation; Educational Services; Management of Companies & Support Services; Wholesale Trade; Construction; Public Administration; Information; Retail Trade; Professional, Scientific & Technical Services; Finance & Insurance; and Utilities.
The five industries reporting contraction in May are: Mining; Health Care & Social Assistance; Real Estate, Rental & Leasing; Other Services; and Agriculture, Forestry, Fishing & Hunting.
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