Business activity in the services sectors of the economy increased again in May, though at a lower rate than in April and also slower than analysts were expecting, the Institute for Supply Management reported Friday.
The Tempe, Ariz.-based research group reported that its index of non-manufacturing business activity fell to 58.5 in May from 61.7 in April. Analysts had been looking for a reading of 60.0.
Any reading above 50 indicates expansion in the services sector, while a reading below 50 means contraction.
The ISM reported that 11 service industries reported growth in May, only one reported slower activity, and five were unchanged. The survey measures the vitality of various service industries such as insurance, real estate and communications.
