US ISM Services PMI dropped from 51.9 to 50.3 in May, below expectation of 52.6. Looking at some details, business activity/production dropped from 52.0 to 51.5. New orders dropped from 56.1 to 52.9. Employment dropped from 50.8 to 49.2. Prices dropped from 59.6 to 56.2.
ISM said, the May Services PMI indicates the overall economy is growing for the fifth consecutive month after one month of contraction in December.
The past relationship between the Services PMI and the overall economy indicates that the Services PMI for May (50.3 percent) corresponds to a 0.2-percent increase in real gross domestic product (GDP) on an annualized basis.
