May Markit Services PMI: Growth Continues

The May US Services Purchasing Managers' Index conducted by Markit came in at 53.4 percent, down slightly from the final April estimate of 55.6.

Here is the opening from the latest press release:

"Alongside the slowing in the manufacturing sector, the cooling pace of expansion in the service sector takes the pace of US economic growth down to the weakest so far in the pandemic recovery with the sole exception of January's slowdown at the height of the Omicron wave. While the survey readings are consistent with GDP growing at an annualized rate of just under 2%, supporting the view that GDP will return to growth in the second quarter, it is worrying that growth momentum is being lost so quickly. Businesses report ongoing difficulties finding staff and souring raw materials, while demand growth measured by inflows of new orders for goods and services is expanding at the slowest rate for almost one-and-a-half years, as spending power is reduced by soaring inflation.

"The inflation surge meanwhile shows no signs of abating, with firms' costs soaring higher at yet another survey record rate in May, reflecting rising energy, materials and staff costs." [Press Release]

Here is a snapshot of the series since mid-2012.