Data Shows Strong Growth in U.S. Services Sector

The U.S. services sector’s economic activity expanded in May, maintaining growth for the 12th month in a row, data showed on Thursday.

The Institute for Supply Management(ISM) Services Purchasing Managers Index (PMI) reached a new all-time record high in May, registering 64%, after rising by 1.3% compared with its level in April at 62.7%.

The previous record high was registered in March at 63.7%.

“The May reading indicates the 12th straight month of growth for the services sector, which has expanded for all but two of the last 136 months,” according to the results of the ISM survey, which also indicated that all 18 services industries reported growth.

Meanwhile, The IHS Markit U.S. Composite PMI Output Index posted 68.7 last month, up from 63.5 in April, to signal the steepest upturn in business activity on record since 2009.

“Faster output growth was registered across both the manufacturing and service sectors. The overall upturn was supported by a sharper expansion in new business. Rates of growth were the fastest on record in both the manufacturing and service sectors. Overall sales were also aided by a survey record rise in foreign client demand.”