S&P Global Services PMI: Sharp Rise to Highest Level in a Year

The May U.S. services purchasing managers' index (PMI) conducted by S&P Global came in at 54.8, consistent with the forecast. The latest reading is the highest reading in a year and keeps the index in expansion territory for the 16th straight month.

From the latest press release, Andrew Harker, Economics Director at S&P Global Market Intelligence, said:

"A return to growth of new business following April's blip supported a marked strengthening of growth in the US service sector in May. Coming on the back of a similar acceleration in the manufacturing sector, the data suggest a healthy pace of expansion in the US private sector approaching the midway point of the year.

"It was not all positive in May, however, with services employment down for the second month running as firms wait to see whether the renewed rise in new business will be sustained before committing to new hires.

"Despite lower employment, wage pressures remained a key factor pushing up input costs, which increased sharply again in May and prompted a faster increase in selling prices, providing further evidence that inflation remains sticky."

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

S&P Global Services PMI