U.S. Services PMI Rises to 54.5 in May as Prices Hit 71.3 and Hiring Contracts
Updated
Updated · PR Newswire · Jun 3
U.S. Services PMI Rises to 54.5 in May as Prices Hit 71.3 and Hiring Contracts
1 articles · Updated · PR Newswire · Jun 3
Summary
ISM’s services PMI climbed to 54.5 in May from 53.6, marking a 23rd straight month of expansion and implying roughly 2% annualized real GDP growth.
New orders rose to 57.3 and business activity to 57.7, with 17 industries expanding and only real estate, rental and leasing reporting contraction.
Employment stayed below 50 for a third month at 47.9, as respondents cited hiring freezes and limited backfilling even while most industries said staffing was flat month to month.
Prices increased to 71.3—the highest since August 2022—while supplier deliveries remained slow at 55.2 and inventories jumped 9.4 points to 62.5, tied for the highest since data collection began in 1997.
Respondents linked rising fuel, freight and petroleum-related costs to tariff shifts and conflict in the Persian Gulf, underscoring persistent inflation and supply-chain pressure across services.