Economic activity in the services sector expanded in May for the fifth consecutive month as the Services PMI registered 50.3%, say the nation’s purchasing and supply executives in
the latest Services ISM Report On Business. The sector has grown in 35 of the last 36 months, with the lone contraction in December of last year.
Business activity slowed, but new orders expanded in May for the fifth consecutive month.
Anthony Nieves, Chair of the Institute for Supply Management (ISM) Services Business Survey Committee, noted:
“There has been a pullback in the rate of growth for the services sector. This is due mostly to the decrease in employment and continued improvements in delivery times (resulting in a decrease in the Supplier Deliveries Index) and capacity, which are in many ways a product of sluggish
demand. The majority of respondents indicate that business conditions are currently stable; however, there are concerns relative to the slowing economy.”