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U.S. Services Companies Growth Accelerates, Private Jobs Pace Slows
The Institute for Supply Management’s (ISM) latest report shows that the pace of expansion by U.S. service companies was stronger in May than the previous month. The association of purchasing managers reported Wednesday that its service index rose to 56.9 last month, up from 55.5 in April, which marks the 112th straight month of service sector growth.
Companies surveyed for the ISM’s Non-Manufacturing ISM Report On Business index reported the Employment Index increased 4.4 percentage points in May to 58.1% from the April reading of 53.7, while business activity increased 1.7 points to 56.9%. The New Orders Index registered 58.6%; 0.5 percentage point higher than the reading of 58.1% in April.
Meanwhile, private sector employment increased by 27,000 jobs from April to May according to the May ADP National Employment Report, which is produced by the ADP Research Institute in collaboration with Moody’s Analytics.
ADP Research Institute’s Ahu Yildirmaz, says, “Following an overly strong April, May marked the smallest gain since the expansion began. Large companies continue to remain strong as they are better equipped to compete for labor in a tight labor market.”
Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth is moderating. Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting.”
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- ◦Economy
