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Services PMI
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One of the key features of contemporary economy is that it is mostly driven by the services sector which accounts for over 70% of the world's GDP. This is why economists keep a close watch on the indicator reflecting activity in the services sector.


According to the Institute for Supply Management, the US Non-Manufacturing Index decreased in April from 56 to 53.5 points; whereas, analysts had predicted a slight fall in the index - by mere 55.3 points.


Activity in the services sector is slowing in the People's Republic of China as well.


Last month the Services PMI reached its high for the last 10 years only to recede in April.


The Services PMI in China flagged to 56.1 points from its March reading of 58 points.


Yet, despite some shrinkage, the PMI has been higher than the benchmark level of 50 points, which actually means that activity in the services sector keeps growing.

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