US services activity picks up in May, S&P says

Services sector activity in the States picked up noticeably midway through the second quarter of 2024, the results of a survey revealed.

S&P Global's final reading for its services sector purchasing managers' index for May was unchanged versus a preliminary reading at 54.8, but up from the preliminary print of 51.3.

Key to the "marked" improvement in activity was "modest" growth in new orders after they recorded their first drop in six months during April, but employment declined for a second month running, the survey compiler said.

"Coming on the back of a similar acceleration in the manufacturing sector, the data suggest a healthy pace of expansion in the US private sector approaching the midway point of the year," said Andrew Harker at S&P Global Intelligence.

"Despite lower employment, wage pressures remained a key factor pushing up input costs, which increased sharply again in May and prompted a faster increase in selling prices, providing further evidence that inflation remains sticky."