Preliminary data released by S&P Global on Friday showed that U.S.
private sector business activity continued to grow in early May, supported by a
robust expansion in service sectors.
According to the report, S&P Global flash services purchasing
manager's index (PMI) came in at 55.1 early this month, up from 53.6 in April. The
latest reading pointed to the quickest growth in the U.S. service sector activity
since April 2022. Economists had expected the indicator to decrease to 52.6. A
reading above 50 signals an expansion in activity, while a reading below this
level signals a contraction.
Meanwhile, S&P Global flash manufacturing purchasing manager's index
(PMI) fell to 48.5 in May from 50.2 in the previous month. The latest print indicated a renewed deterioration in manufacturing operating conditions. Economists had forecast the index to drop to 50.2.
Overall, S&P Global flash U.S. Composite PMI Output Index checked in
at 54.5 in May, up from 53.4 in April. The latest figure pointed to the
sharpest expansion in the U.S. private sector activity since April 2022. Economists
had predicted the composite PMI to fall to 50.0.