The Institute for Supply Management’s non-manufacturing business activity composite index was 44.0 in May, up from 43.7 in April on a seasonally adjusted basis, the group said yesterday.
Economists polled by Thomson Reuters had expected a 45.0 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index, closely watched for signs of inflation, rose to 46.9 from 40.0 and the employment index increased to 39.0 from 37.0. The business activity index slid to 42.4 from 45.2; the new orders index was at 44.4, off from 47.0; backlog of orders fell to 40.0 from 44.0; new export orders dipped to 47.0 from 48.5; inventories increased to 47.0 from 43.0; inventory sentiment held at 62.5; the supplier deliveries index grew to 50.0 from 45.5, and imports slid to 46.0 from 48.5.
