Economists forecast a modest increase in the May ISM Services PMI to 53.8, signaling continued but slowing expansion.
The Institute for Supply Management is set to release the May Services PMI on Wednesday, with economists projecting a slight uptick to 53.8 from April’s 53.6. The reading would indicate ongoing economic expansion in the services sector, though at a decelerating pace.
April’s PMI stood at 53.6, marking a marginal decline from March’s 53.8. Analysts had anticipated a more pronounced slowdown, but the sector has shown resilience amid mixed economic signals. A reading above 50 signals growth, while below indicates contraction.
Market participants will watch the release closely for signs of cooling demand or persistent inflationary pressures, which could influence Federal Reserve policy expectations.