Services Growth Slows, But Jobs Created
NEW YORK (Reuters) - Growth in the giant U.S. services sector slowed in May but remained strong enough to improve the industry's employment prospects, a survey showed on Thursday.
The Institute for Supply Management's non-manufacturing index eased to 65.2 in May from a record of 68.4 set in April and just short of Wall Street estimates for a dip to 66.0.
A number above 50 indicates growth in services, which include everything from restaurants and hotels to banks and airlines, accounting for about 80 percent of the U.S. economy.
In the latest evidence of a brighter labor market outlook, the ISM's employment index climbed to 56.3 in May from 54.5 in April. New orders fell to 61.3 from 65.6 in April.
Inflationary pressures were clearly building, with the prices paid index jumping to 74.4 from 68.6.