03.06.202614:04:29UTC+00US Services Activity Accelerates

The ISM Services PMI rose to 54.5 in May 2026 from 53.6 in April, surpassing market expectations of 53.8. This marked the strongest expansion in the services sector in three months, driven by faster growth in business activity (57.7 vs. 55.9), new orders (57.3 vs. 53.5), and inventories (62.5 vs. 53.1).

In contrast, employment contracted for a third consecutive month (47.9 vs. 48.0), with many respondents noting that their firms had implemented hiring freezes or were not backfilling vacant positions.

Price pressures intensified, reaching their highest level since August 2022 (71.3 vs. 70.7). Diesel, gasoline, oil, and related commodities were again the most frequently cited items with rising prices. Additionally, petroleum-related products were specifically mentioned as becoming more expensive, a development not reported in April.

Meanwhile, growth in the backlog of orders moderated (51.3 vs. 53.0), and the supplier deliveries index pointed to slower delivery performance (55.2 vs. 56.8).