(Reuters) – Growth in U.S. service sector activity slowed in May as new orders fell, the Institute for Supply Management (ISM) monthly survey released on Monday showed.
The ISM services index fell to 50.3 from 51.9 the previous month, while economists polled by Reuters on average expected a figure of 52.2.
The component of new orders received by service businesses fell from 56.1 to 52.9, while the price paid sub-index fell from 59.6 to 56.2.
The cooling in demand has also led to a slowdown in prices in the sector, which should be seen as good news for Federal Reserve officials, who are trying to bring inflation back to its 2% target.
The employment measure went from 50.8 to 49.2.
(Written by Diana Mandiá, edited by Blandine Hénault)
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