The ISM’s nonmanufacturing index stabilized in May, following a precipitous drop the previous month, indicating a stabilization of service sector growth. The index rose just 0.2 points in May to a reading of 53.7. In the previous two months the index fell by 3.8 points. The nonmanufacturing index has remained above its neutral threshold of 50 for 29 consecutive months, indicating an expansion of the industry.
The details of May’s report were mixed, with the business activity index gaining 1.0 points rising to 55.6. New orders rose as well in May, raising 2.0 points to 55.5. Despite these gains, the employment index was weak, falling 3.4 points, near its neutral threshold. New export orders were notably weak as well, falling 5.0 points to 53.0.
Read the ISM's Report.