US services activity slows unexpectedly in May, ISM says

US services sector activity slowed unexpectedly last month amid slower new order growth while stockpiles piled up, the results of a closely followed survey showed.

The Institute for Supply Management's services sector Purchasing Managers' Index retreated from April's reading of 51.9 to 50.3.

That compared to a consensus forecast of 52.5.

A gauge of hiring in the sector also slipped, from 50.8 to 49.2, while that for inventories jumped from 47.2 to 58.3.

Price pressures also abated with the sub-index tracking the prices paid by companies easing from 59.6 to 56.2.

Survey respondents from multiple industries indicated that supply conditions were continuing to improve, while demand was roughly steady.

One respondent in the Construction space however spoke of slowing growth while in Educational Services another said that enrollment was forecast to fall by 2.5%.

-- More to follow --