U.S. Services PMI climbed to 58.1 in May, from 55 the previous month. This was the fastest pace of output expansion since March 2012.
This was pretty much in line with expectations for a reading of 58.2, but down from a flash reading of 58.4.
A reading below 50 indicates contraction.
Hiring in the services sector also climbed to 52.8, from 51.2 the previous month on the back of renewed confidence in the economic outlook.
“The US economy is moving into the summer with renewed vigor,” Chris Williamson, chief economist at Markit said in a press release.
“Alongside the sister manufacturing survey, the upturn in the services PMI indicates that GDP looks set to rise at an annualized rate of 3% or more in the second quarter after the 1.0% weather-related decline in the first three months of the year.”
Here’s a look at the sub-indices of the services PMI report:
Here’s a look at the trajectory of services PMI:
Meanwhile, the U.S. composite PMI was up to 58.4 in May, from 55.6 in April. But the final print was modestly below the flash reading of 58.6.
The latest reading adds to signs that the U.S. economy was regaining momentum, and followed a stronger manufacturing report. Some better than expected economic data has brought back talk of an economic snapback.