Key facts
- Canada's services PMI reached 50.6 in May, the highest since November 2024.
- The Eurozone services PMI fell to 47.7 in May, marking the third consecutive month of contraction.
- UK services sector activity contracted in May for the first time since April 2025.
- The US Services PMI fell to 50.7 in May, indicating slower expansion.
- US private employers added 122,000 jobs in May.
- Initial jobless claims in the US rose to 225,000 for the week ended May 30.
- Eurozone retail sales decreased by 0.4% in April.
- Egypt's non-oil private sector contracted in May.
- Singapore's manufacturing PMI rose to 51.0 in May.
- Mid-American Manufacturing PMI decreased to 54.4 in May.
Global economic indicators for May present a varied landscape, with notable expansions in some service sectors juxtaposed against contractions and persistent cost pressures in others. Canada's services economy achieved an 18-month high in May, with its Purchasing Managers' Index (PMI) reaching 50.6. However, this expansion was tempered by accelerating operating costs, attributed to higher fuel and wage expenses, and a marginal fall in new business amid geopolitical uncertainty.
The Eurozone's services sector experienced its third consecutive month of contraction in May, with the PMI falling to 47.7. This downturn is exacerbated by input costs surging at their sharpest rate in three-and-a-half years and charge inflation hitting a 38-month high. The data suggests a potential 0.2% quarterly GDP decline for the region. Similarly, the UK's services sector contracted in May for the first time in over a year, with the PMI dropping to 49.3. Businesses in the UK reported high input cost inflation and a continued contraction in hiring, with house prices remaining unchanged in May after a previous unexpected fall.
In the United States, the services sector expanded at a slower pace, with the Services PMI falling to 50.7 in May, below forecasts and marking one of the weakest growth months in 2.5 years. The US ISM Services PMI, however, exceeded expectations at 54.5, though its employment index contracted to 47.9. The US labor market shows mixed signals: private employers added 122,000 jobs in May, exceeding forecasts, with wages rising 4.4%. Yet, initial jobless claims rose to 225,000 for the week ended May 30, surpassing economists' predictions, indicating a stable but cautious labor market.
Other economies also reflect these trends. Egypt's non-oil private sector contracted in May due to escalating business costs, driven by higher input prices and a weakening Egyptian pound. Singapore's manufacturing sector saw a modest expansion, with its PMI rising to 51.0. In contrast, Mid-American manufacturing experienced a slowdown, with its PMI falling to 54.4, while input prices rose significantly, pushing the Price Index to 81.7. Russia's foreign exchange intervention jumped in June, while its budget balance as a percentage of GDP was -2.6% in May. Kyrgyzstan's credit growth decelerated to 44.7% year-on-year in April.