US Service sector output cooled to the softest increase for four months amid the slowest increase in new business since September last year.
- The S&P Global US Services PMI fell to 53.4 in May from 55.6 in April, largely in line with its flash estimate of 53.5.
- New business continued to expand in May, with client demand growing strongly. Some firms indicated that customer spending on services eased as price hikes hurt customer demand.
- Chris Williamson, a chief business economist at S&P Global, stated that the slowing down of expansion in the service sector pushes the rate of US economic growth down to the weakest since the pandemic recovery.
Services firms remained optimistic about the outlook for output in the next 12 months, largely due to consistent increases in new business and hiring opportunities.
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Source: S&P Global