US services firms grew at faster pace in May

FAN Editor

U.S. services firms expanded at a stronger pace in May compared to the prior month, as companies saw gains in business activity, new orders and employment.

Continue Reading Below

The Institute for Supply Management said Tuesday that its services index rose to 58.6, from 56.8 in April. Any reading above 50 signals growth. The services sector has expanded for 100 consecutive months, or more than eight years.

The gains are consistent with an economy that has steadily been expanding for nine years without many of the excesses that could risk a downturn. The index dovetails with the May jobs report released last week by the government that showed employers added 223,000 jobs as the unemployment rate fell to 3.8 percent from 3.9 percent.

The index is drawn from a survey of purchasing managers in the services industry, which includes finance, health care and retail and accounts for the majority of U.S. economic activity. The measure of employment picked up from April, although some of the firms interviewed by the survey said they’re struggling to find qualified workers.

Of the services industries tracked in the survey, 14 reported growth and just one — the information sector — said its business was contracting.

Free America Network Articles

Leave a Reply

Next Post

Trump's lawyers, "Apprentice" contestant in court over lawsuit

NEW YORK – Lawyers for President Donald Trump and a former “Apprentice” contestant who sued the president for saying her sexual misconduct claims were lies arrived in court in New York on Tuesday. Tuesday’s court date is the first since a Manhattan judge turned down Trump’s bid to dismiss Summer Zervos’ […]