US Services Activity Nearly Stalls as Price Gauge Slides
- ISM measure decreased in May to a five-month low of 50.3
- Index of prices paid for inputs dropped to a three-year low
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The US service sector nearly stagnated in May as business activity and orders downshifted, while a measure of prices paid slid to a three-year low.
The Institute for Supply Management’s overall gauge of services fell to 50.3, the weakest level this year, from 51.9 in April, according to data out Monday. The May reading was barely above 50, which separates growth and contraction, and weaker than all estimates in a Bloomberg survey of economists.