The U.S. services sector gained further traction in May, as the ISM Non-Manufacturing Purchasing Managers’ Index (PMI) increased to 54.5, up from 53.6 in April 2026. The latest reading, updated on 3 June 2026, signals a continued expansion in the non-manufacturing segment of the economy.
A PMI level above 50 indicates growth, and the move higher from April suggests that activity in key service industries—from finance and professional services to transport and hospitality—continued to improve through May. The acceleration implies rising demand and ongoing resilience in the broader U.S. economy, with services maintaining their role as a primary driver of overall growth.
With the index now at 54.5, markets and policymakers may view the data as a sign that economic momentum remains solid in the second quarter, even as they assess how sustained services strength could influence inflation dynamics and future policy decisions.
