US May final services PMI 54.8 vs 54.8 prelim

• Prior 51.3
• Composite PMI 54.5 vs 54.4 prelim
• Prior 51.3

Little change to the initial estimates as output growth hits a one-year high. The jump compared to April also owes to a renewed increase in new orders. The only negative is that employment conditions worsened during the month. Oh, and of course stickier price pressures as well. S&P Global notes that:

“A return to growth of new business following April’s blip
supported a marked strengthening of growth in the US
service sector in May. Coming on the back of a similar
acceleration in the manufacturing sector, the data
suggest a healthy pace of expansion in the US private
sector approaching the midway point of the year.

“It was not all positive in May, however, with services
employment down for the second month running as firms
wait to see whether the renewed rise in new business
will be sustained before committing to new hires.

“Despite lower employment, wage pressures remained
a key factor pushing up input costs, which increased
sharply again in May and prompted a faster increase in
selling prices, providing further evidence that inflation
remains sticky.”

This article was written by Justin Low at www.forexlive.com.