Courtesy of Mish.
The Markit U.S. Services PMI™ final data shows a weaker rise in service sector business activity in May.
The Composite PMI (manufacturing plus services) flirts with contraction.
Key Points
- Service providers indicated slower activity and new business growth
- Weakest rise in payroll numbers since January 2015
- Business optimism eases to a post-crisis low in May
Relatively subdued client spending provided firms with the opportunity to clear backlogs of work in May. Lower volumes of work outstanding have now been recorded for ten months running, which is the longest continuous period since the survey began.
Reduced pressure on operating capacity and weaker new business growth acted as a brake on job hiring in May. Weaker employment growth has now been recorded in three of the past four months, with the latest expansion in payroll numbers the slowest since January 2015.
Services PMI
Composite PMI vs. GDP
Comments from Markit Chief Economist Chris Williamson
