The economic activity in the US service sector expanded at an impressive pace in May with the Institute for Supply Management (ISM) Services PMI climbing to a new series high of 64 from 62.7 in April. This reading came in stronger than the market expectation of 63.
Further details of the publication showed that the Prices Paid Index jumped to its highest level since September 2006 at 80.6. Additionally, the New Orders Index improved modestly to 63.9 from 63.2 while the Employment Index edged lower to 55.3 from 58.8.
Commenting on the data, “the rate of expansion is very strong, as businesses have reopened and production capacity has increased,” said Anthony Nieves, Chair of the ISM Services Business Survey Committee. “However, some capacity constraints, material shortages, weather-related delays, and challenges in logistics and employment resources continue.”
The US Dollar Index preserves its bullish momentum after this data and was last seen gaining 0.55% on the day at 90.40.
