- Prior 51.3
- Composite PMI 54.5 vs 54.4 prelim
- Prior 51.3
Little change to the initial estimates as output growth hits a one-year high. The jump compared to April also owes to a renewed increase in new orders. The only negative is that employment conditions worsened during the month. Oh, and of course stickier price pressures as well. S&P Global notes that:
"A return to growth of new business following April's blip supported a marked strengthening of growth in the US service sector in May. Coming on the back of a similar acceleration in the manufacturing sector, the data suggest a healthy pace of expansion in the US private sector approaching the midway point of the year.
"It was not all positive in May, however, with services employment down for the second month running as firms wait to see whether the renewed rise in new business will be sustained before committing to new hires.
"Despite lower employment, wage pressures remained a key factor pushing up input costs, which increased sharply again in May and prompted a faster increase in selling prices, providing further evidence that inflation remains sticky."
