US May Final Services PMI at 53.7…Exceeds Market Expectations

The United States' final Services Purchasing Managers' Index (PMI) for May surpassed market expectations.

On the 4th (local time), S&P Global released its PMI report, stating that the final US Services PMI for May came in at 53.7, exceeding the market forecast of 52.3.

This published Services PMI index was higher than last month’s (50.8), indicating that the US services sector expanded in May compared to April.

S&P Global commented, "The May Services PMI recorded a higher level than both the May flash estimate and the April final reading. This shows that the growth in activity has accelerated markedly," adding, "It has increased consecutively every month since 2023." The firm further stated, "This was influenced by a more stable business environment compared to April."

Chris Williamson, Chief Economist at S&P, said, "Growth in the services sector improved more than expected, and confidence regarding future outlook has increased, partly due to the tariff deferment effect." He also noted, "However, rising service sector costs due to tariffs prompt caution from authorities. The benchmark interest rate is expected to remain unchanged until December."

Meanwhile, the PMI uses 50 as a baseline to determine whether the service sector is expanding or contracting.