US services activity eases in May

WASHINGTON, June 5 (AFP): US services sector activity cooled last month to the lowest level since December, with growth in new orders slowing and employment contracting, according to survey data released on Monday.
The Institute for Supply Management (ISM) services index, measuring the health of this key sector of the economy, logged a lower-than-expected reading of 50.3 per cent last month, down from April's 51.9 per cent figure.
A number above 50 means the sector is still expanding, although its pace has eased in an environment of higher interest rates.
The Federal Reserve has lifted the benchmark lending rate 10 straight times since early 2022 to cool demand, but activity in the services sector has been slower to moderate than that in the manufacturing industry.