Mumbai, June 5 -- Service sector activity in the U.S. unexpectedly saw a slight contraction in the month of May, the Institute for Supply Management revealed in a report released on Wednesday.
The ISM said its services PMI fell to 49.9 in May from 51.6 in April, with a reading below 50 indicating contraction.
With the unexpected decrease, the services PMI dropped to its lowest level since hitting 49.2 in June 2024, which marked the last time the index was in contraction territory.
The surprise dip by the headline index partly reflected a notable downturn by new orders, as the new orders index tumbled to 46.4 in May from 52.3 in April. The index indicated contraction for the first time since June 2024.
The business activity index also sl...