US ISM non-manufacturing index likely to have weakened in May

The US ISM non-manufacturing index is expected to have slightly weakened in May. According to a Societe Generale research report, the ISM non-manufacturing index is likely to have declined to 55. The Markit services PMI reversed all the gains recorded in April, declining to 51.2 from 52.8. In the mean time, the Richmond Fed services index dropped slightly, with retail sales remaining flat and revenue growth easing.

The revenues’ measure declined four points to 11, whereas the measure of retail sales dropped by 36 points to one. A reading consistent with the projection will match the trailing six-month average, highlighting the healthy, stable growth rate in the services sector, said Societe Generale.