2018 Economic Calendar
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PMI Services Index  
Released On 6/5/2018 9:45:00 AM For May, 2018
PriorConsensusConsensus RangeActual
Level54.6 55.7 54.8  to 55.7 56.8 

Highlights
Rising backlogs and a complementary increase in hiring, both running near 3-year highs, gave a surprising lift to the services PMI. At 56.8 for final May, the index is up 2.2 points from April and, even more surprising, is up 1.1 points from the mid-month flash which suggests that conditions accelerated into month end. Output is also near a 3-year high with new orders just off a 3-year high.

The sample is having trouble sourcing raw materials, which hints at tariff effects, with tariffs directly cited for a 5-year high in input costs. The report confirms indications from the Federal Reserve's Beige Book that some of these costs are being passed through to selling prices which are at a 3-month high.

These results together with last week's PMI manufacturing report, which came in at 56.4, make for a substantial 1.7 point gain in the PMI composite to 56.6 vs 54.9 in April. All indications from the small sample reports like this one are pointing to May as a month of unusual strength.

PMI services generally lag by several points the ISM non-manufacturing index which is getting a major boost from two sectors not covered in PMI services: mining and construction. The ISM report is up next at 10:00 a.m. ET.

Consensus Outlook
PMI services moved higher in the flash report for May, getting a boost from backlogs and showing other signs of capacity stress as well including a rise in input costs. The index is expected to hold at the 55.7 flash reading.

Definition
US Services Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys collected from over 400 U.S. companies which provide a leading indication of what is happening in the private sector services economy. It is seasonally adjusted and is calculated from seven components, including New Business, Employment and Business Expectations.  Why Investors Care
 

2018 Release Schedule
Released On: 1/42/53/54/45/36/57/58/39/610/311/512/5
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


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