The service sector's growth slowed down in May

Friday was not only about the jobs report, as key reports on the services sector were also released.

They showed that the sector, which is responsible for 80% of GDP, continued expanding but at a slower pace.

ISM’s non-manufacturing Purchasing Manager’s Index (PMI) came in at 52.9 in May, missing the forecast for 55.3, and showing that the sector continued growing but at a slower pace.

The gauges of new orders and employment declined, while the prices index rose.

Markit Economics’ final services PMI for May was 51.3, just under the forecast for 51.4. The index remaining above 50 indicates continued expansion.

However, the pace of growth was one of the slowest since the recession.

Respondents to Markit’s survey said client spending was soft. They also reported weak hiring, as jobs growth was the smallest since January 2015.

Markit chief economist Chris Williamson said in the release: “With optimism about the business outlook dropping to a new post-crisis low, companies are expecting conditions to remain challenging in coming months, citing uncertainty about the presidential election as well as broader worries about weak demand at home and abroad.”

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