A BMI value above 50 points indicates an increase in the performance of the economic sector, and a value below 50 points indicates a decrease.
In December of last year, the indicator fell below 50 points, indicating a contraction, for the first time in two and a half years, but since January it has been above 50 points again.
In addition to services, the ISM service industry purchasing manager index also reflects the performance of the construction industry.
In May, the index of new orders fell from 56.1 points in April to 52.9 points, the index of business activity fell from 52.0 points to 51.5 points, and the employment index deteriorated from 50.8 points to 49.2 points.
The stock index rose to 58.3 points from 47.2 points in April. The inventory sentiment index improved in May, reaching 61.0 points after 48.9 points in April.
The service provider price index, indicating inflationary pressure, fell from 59.6 points in April to 56.2 points, the lowest level since May 2020.
The ISM service industry purchasing managers’ index is an important measure of the performance of the American economy, since the service sector accounts for two-thirds of the US gross domestic product (GDP). It was announced on Thursday that the May purchasing managers’ index (BMI) of the US manufacturing industry weakened to 46.9 points compared to April. From 47.1 points, according to data from the Institute for Supply Management – ISM.
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