The US services industry is still growing at a healthy clip.
The Markit US services PMI slipped to 56.4 in May from 57.4 in April.
While this is a slight deterioration, any reading above 50 signals growth.
“Service providers indicate the sharpest upturn in payroll numbers since June 2014,” Markit noted in its report.
“The US economy looks to have grown at a healthy pace in May, providing further evidence that the rate of expansion has picked up from the weak start to the year,” Markit’s Chris Williamson said. “The resilience of domestic demand in particular helped encourage companies to take on extra staff at the fastest rate for almost a year.”