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- U.S. services sector activity improves slightly more than initially estimated in May - IHS Markit
U.S. services sector activity improves slightly more than initially estimated in May - IHS Markit
The latest
report by IHS Markit revealed on Wednesday the seasonally adjusted final IHS
Markit U.S. Services Business Activity Index (PMI) stood at 37.5 in May, up
from a record low 26.7 in April and slightly higher than the “flash” figure of
36.9. The rate of contraction in activity softened considerably amid some reports
of businesses returning to work, but was nonetheless the second-steepest since
data collection began in October 2009.
Economists had
forecast the index to stay unrevised at 36.9.
According to
the report, the U.S. service providers indicated a further significant, albeit softer,
contraction in business activity in May, as the impact of the COVID-19
continued to dampen client demand. At the same time, new order inflows declined
at a slower rate than in April, despite domestic and foreign demand remaining
subdued. Consequently, companies cut jobs at a considerable pace, and one that
was only slightly slower than April's recent record. The reduction in
employment partially stemmed from pessimism among firms towards the outlook for
activity over the next year, as extreme levels of business uncertainty weighed
on confidence.
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