US service sector growth slows in May: ISM survey

[NEW YORK] The pace of growth in the US services sector slowed in May, falling back from what had been a five-month high as reads on business activity, new orders and employment all weakened, an industry report showed on Wednesday.

The Institute for Supply Management said its services index fell to 55.7 from 57.8 in April. Analysts were looking for a reading of 57.0 in May, according to a Reuters survey.

A reading above 50 indicates expansion in the sector.

The ISM's index of business activity fell to 59.5 from April's reading of 61.6. Analysts were looking for a reading of 60.5.

The new orders index fell to 57.9 from 59.2 while the employment index dropped to 55.3 from 56.7. On the upside, the index on prices rose to 55.9 from 50.1.

REUTERS