The Institute for Supply Management's (ISM) Non-Manufacturing Business Activity Index saw a notable slowdown in May, as revealed in data updated on June 4, 2025. The index, which measures the performance of the U.S. service sector, recorded a reading of 50.0, a decline from April's 53.7.
This deceleration highlights a slowing momentum in the service sector, which had previously shown more robust growth in April. The May index figure of 50.0, which marks the threshold between growth and contraction, signifies that the non-manufacturing sector of the economy essentially came to a standstill during the period in review. A reading above 50 generally indicates expansion, while a reading below suggests contraction.
Analysts were closely monitoring these figures, as they reflect broader economic activity, considering the service sector's significant role in the U.S. economy. The latest index values may influence economic outlooks and shape policy considerations, particularly in light of potential challenges faced by service industries ranging from retail and transportation to healthcare and finance.
