Services sector expands and shows strength in May, beating expectations
The services PMI index came in at 54.5%, almost one point above April's figure and above the 53.9% anticipated by the consensus of analysts polled by MarketWatch.
The Long Island Railroad system at the New York terminal (File).
Service sector activity in United States registered a stronger-than-expected rebound in May, according to the data released Wednesday by the Institute for Supply Management (ISM).
The services PMI index came in at 54.5%, almost one point above April's figure and above the 53.9% anticipated by the consensus of analysts consulted by MarketWatch. With this result, the services sector now accumulates 23 consecutive months above the 50% level, indicating a clear phase of expansion.
Service sector drives the economy
This data reinforces the idea that, despite geopolitical tensions and trade uncertainties, the U.S. economy maintains remarkable resilience, especially in the services sector, which accounts for more than 70% of the country's GDP.
Although analysts had expected a moderate improvement, the better-than-expected result offers positive encouragement for the markets, which see this strength in the services sector as an indicator that the economy is not entering a sharp slowdown phase.
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