Is the U.S. services sector beginning to cool off?
After being red hot, the latest data suggest that the services industry is showing signs of slowing down, with business activity, new orders, and employment sliding. Prices are also coming down.
The Institute for Supply Management’s Services Purchasing Managers’ Index — a general trend of where the industry is going — came in at 50.3 in May, down from 51.9 in April (anything above 50 indicates expansion). This was also below the consensus estimate of 52.2.
Here is a breakdown of the sub-indexes:
- Employment: 49.2
- Business Activity: 51.5
- New Orders: 52.9
- Prices: 56.2
“The majority of respondents indicate that business conditions are currently stable; however, there are concerns relative to the slowing economy,” said Anthony Nieves, the Chair of the ISM Services Business Survey Committee, in a statement.
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