The ISM index stood at 64%, up 1.3 points from April, and more than the 63% expected by analysts.
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Activity in services in the United States jumped more than expected in May, even reaching a level never recorded before, a sign that the sector, the hardest hit by the pandemic, is regaining strength, according to the index of ISM trade association released Thursday.
The index, which measures the level of business activity, stood at 64%, up 1.3 points from April, and more than the 63% expected by analysts.
Growth is strong, “because companies have reopened and production capacities have increased,” said ISM chairman Anthony Nieves, quoted in the press release.
More than half of American adults are now fully vaccinated, allowing restaurants, concerts, hotels, theme parks, to find their customers.
The employment situation continues to improve, but at a slower pace than in the previous month. Employers find it difficult to recruit, despite the 15 million unemployed in the country, struggling in particular to find candidates for the lowest paid jobs.
“Certain capacity constraints, material shortages, weather-related delays and logistics and manpower problems persist,” also warns Anthony Nieves.
As a result, prices continue to rise, at a higher rate than in April. The index measuring them stands at 80.6% (+3.8 points), close to the record of 83.5% recorded in September 2005.
US Central Bank (Fed) officials insist that inflation should last for several months, before returning to a normal level, but concerns persist in the markets, which fear a runaway inflation that would be detrimental to growth .
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