Updated: 03-Jun-22 10:21 ET

May ISM Non-Manufacturing Index

Updated: 03-Jun-22 10:21 ET

Highlights

• The ISM Non-Manufacturing Index for May decreased to 55.9% (Briefing.com consensus 56.6%) from 57.1% in April. The dividing line between expansion and contraction is 50.0%.
• The May reading marks the 24th straight month of growth for the services sector, but it is the lowest reading since since February 2021.

Key Factors

• The New Orders Index increased to 57.6% from 54.6%.
• The Production Index fell to 54.5% from 59.1%.
• The Prices Index dropped to 82.1% from a record 84.6%.
• The Employment Index moved up to 50.2% from 49.5%.
• The Supplier Deliveries Index increased dropped to 61.3% from 65.1%.
• The Backlog of Orders Index fell to 52.0% from 59.4%.

Big Picture

• The key takeaway from the May report is that business activity for the non-manufacturing sector slowed for the second straight month as businesses continued to grapple with pricing pressures, supply chain issues, and labor supply constraints.

Category	MAY	APR	MAR	FEB	JAN
Non-Manufacturing ISM index	55.9	57.1	58.3	56.5	59.9
Business Activity	54.5	59.1	55.5	55.1	59.9
New Orders	57.6	54.6	60.1	56.1	61.7
Employment	50.2	49.5	54.0	48.5	52.3
Deliveries (nsa)	61.3	65.1	63.4	66.2	65.7
Inventories (nsa)	51.0	52.3	51.7	50.8	49.4
Exports (nsa)	60.9	58.1	61.0	53.0	45.9
Imports (nsa)	52.8	52.9	45.0	51.7	51.1
Prices Paid	82.1	84.6	83.8	83.1	82.3