Purchasing Managers’ Index – Services, May 2015
Services PMI rose to 58.2 in May: Orders shift into higher gear
- The purchasing managers’ index for services (Services PMI) rose from 54.0 to 58.2 in May. All sub-indices were in the growth zone and only employment, at 54.3, was below the 55 level. The largest positive contribution came from the sub-index for new orders (1.7 points), while suppliers’ delivery times contributed the least (0.4 points) to the monthly increase.
- The sub-index for new orders rose from 54.9 to 57.9 in May. At the same time order backlogs grew at a slower pace and its index reading for May was 51.2, a decline from 54.5 in April. The fact that new orders and order backlogs have both risen for nearly two years suggests that demand in the service sector is good.
- The sub-index for business volumes rose by 4.9 points to 60.5 in May, the second highest level this year. In line with rising business volumes and orders, production plans remained optimistic. The index for planned business volumes was 64.6 in May, an increase from 62.4 in the previous month.
- The index for suppliers’ intermediate goods remained in the growth zone for the tenth consecutive month with a reading of 57.7 in May. On average, prices have risen faster in the last three months than the immediately preceding three-month period.
PMI Services - May 2015