The ISM Services PMI fell to 49.9 in May from 51.6 in April, indicating the first contraction in the services sector since June 2024.

• New Orders dropped -5.9 pts to 46.4, returning to contraction for the first time since December.
• Business Activity fell -3.7 pts to 50.0, ending a 47-month expansion streak.
• Employment rose +1.7 pts to 50.7, returning to growth after two months of contraction.
• Prices rose +3.6 pts to 68.7, the highest since November 2022 and up 7.8 pts in the past two months.
• Inventories declined -3.7 pts to 49.7, moving back into contraction after one month of growth.