Key facts
- US ISM Services Prices Index rose to 71.3 in May.
- The May reading was higher than April's 70.7.
- The May reading was lower than the forecast of 72.3.
- Overall ISM Services PMI was 54.5, exceeding the expected 53.8.
- Business activity index rose to 57.7 in May.
- New orders index increased to 57.3 in May.
- Employment index contracted to 47.9 in May.
The Institute for Supply Management (ISM) reported that the US ISM Services Prices Index rose to 71.3 in May, an increase from April's reading of 70.7. This figure, however, was below the forecast of 72.3. The overall ISM Services PMI came in at 54.5, exceeding the expected 53.8 and the prior month's 53.6, indicating continued expansion in the services sector. Business activity improved to 57.7 from 55.9, while new orders saw a significant jump to 57.3 from 53.5. However, the employment index contracted further, falling to 47.9 from 48.0. Respondents cited higher costs for oil, fuel, freight, labor, and commodities, with no commodities reported as decreasing in price. Supplier deliveries slowed, with the index at 55.2, and backlogs of orders remained in expansion.