Institute for Supply Management (ISM) reported on Thursday that its
non-manufacturing index (NMI) came in at 64.0 in May, which was 1.3 percentage
points higher than the unrevised April reading of 62.7 percent. This was the highest reading on the
record and pointed to the growth in the services sector for the 12th straight
Economists forecast the index to increase to 63.0 last month. A reading above 50 signals expansion, while a reading below 50 indicates contraction.
All 18 services industries reported gains last month, as businesses reopened and production capacity increased, the ISM said, even though some capacity constraints, material shortages, weather-related delays, and challenges in logistics and employment resources continued.
According to the report, the ISM’s non-manufacturing Production measure climbed 3.5 percentage points to 66.2 percent from the April reading, while its New Orders gauge rose 0.7 percentage point to 63.9 percent, the Supplier Deliveries index jumped 4.3 percentage points to 70.4 percent and the Inventories indicator increased 2.4 percentage points to 51.5 percent. Meanwhile, the Employment indicator fell 3.5 percentage points to 55.3 percent. Elsewhere, the Prices index went up 3.8 percentage points to 80.6 percent, indicating that prices increased in May, and at a faster rate. This was the index's highest reading since July 2008.
Commenting on the data, the Chair of the ISM Services Business Survey Committee, Anthony Nieves, noted, “The past relationship between the Services PMI and the overall economy indicates that the Services PM for May (64 percent) corresponds to a 5.2-percent increase in real gross domestic product (GDP) on an annualized basis.”
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Telerade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Telerade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.