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US Services Activity Expands at Slowest Pace in Three Months

The U.S. services sector experienced its slowest growth in three months during May, as indicated by the Institute for Supply Management's (ISM) services PMI, which fell to 50.3 from 51.9 in April. This slight expansion, just above the 50 threshold that separates growth from contraction, reflects a cooling in the sector following a period of robust growth. Key factors contributing to this slowdown include a decline in new orders, particularly in sectors like real estate and retail, and a reduction in employment levels, with the employment index dropping to 47.1, signaling contraction. Despite these challenges, there was a slight increase in business activity, and supplier deliveries continued to slow, suggesting some ongoing supply chain issues. Additionally, while input prices rose, the rate of increase was the lowest in three years, hinting at easing inflation pressures. Overall, the report suggests a cautious outlook for the services sector, with businesses facing headwinds from higher interest rates and economic uncertainty.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/other/us-services-activity-expands-at-slowest-pace-in-three-months/ar-AA1vgIlO ]