US service sector weakens in May: ISM

0 Comments | AFP, June, 2006

WASHINGTON (AFP) — The US economy's all-important services sector weakened in May, according to a survey by the Institute for Supply Management.

The ISM non-manufacturing index slipped to 60.1 percent from 63.0 percent in April, roughly in line with Wall Street expectations.

Any figure above 50 indicates expansion, so the report suggested continuing expansion in services, which makes up the lion's share of activity in the world's biggest economy.

But the pace of the expansion is slowing, the survey of US service providers showed Monday.

"Members' comments in May are mostly positive concerning current business conditions," said the ISM survey chief Anthony Nieves, who is a senior vice president at Hilton Hotels Corp.

But he added: "Price...