The ISM Services PMI rose to 54.5 in May, exceeding expectations and signaling stronger service sector growth.
The US service sector expanded faster in May, with the ISM Services PMI rising to 54.5 from 53.6 in April. The reading surpassed the consensus estimate of 53.8, marking the fifth consecutive month of growth.
April’s PMI stood at 53.6, while economists had anticipated a modest increase to 53.8. The May print reflects accelerating business activity, driven by demand and new orders.
Markets may interpret the stronger-than-expected data as a sign of resilient economic activity, potentially influencing Federal Reserve policy expectations.