Strong US services growth balances softer industrials, PMI surveys show

US services activity grew faster than expected in May, though manufacturing output slowed on the previous month, according to a purchasing managers' index survey published on Tuesday.

Markit's 'flash' services PMI for May rose to 54.0 from a final reading of 53.1 for April, which the market expected to remain flat.

This more than offset a weaker reading for the flash manufacturing PMI survey, which showed a softening to 52.5 from 52.8 the month before, when the consensus forecast had been for a slight increase in growth to 53.0.

An index reading above 50 indicates growth, while anything below 50 would denote a decrease.

Markit's composite index of its US PMI surveys for May showed an increase in growth, with a flash reading of 53.9 up from the previous month's 53.2.