- Business Insider — 55.5%, up from 55.2% in April.
- Bloomberg — couldn’t find any prediction, which may be because of what I’ll note next.
Comment: Institute for Supply Management has egg on its face, and then some, for publishing an erroneous Manufacturing Index on Monday and then needing two bites at the apple to fix it.
Though the derision directed their way is well-deserved, the practical effect should be that today’s Non-Manufacturing report will be scrubbed from top to bottom when it’s released here at 10 a.m.
HERE IT IS (permanent link; paragraph breaks added by me):
The NMI® registered 56.3 percent in May, 1.1 percentage points higher than April are reading of 55.2 percent. This represents continued growth at a faster rate in the Non-Manufacturing sector and is the highest reading for the index since August 2013, when the index registered 57.9 percent.
The Non-Manufacturing Business Activity Index increased to 62.1 percent, which is 1.2 percentage points higher than the April reading of 60.9 percent, reflecting growth for the 58th consecutive month at a faster rate.
The New Orders Index registered 60.5 percent, 2.3 percentage points higher than the reading of 58.2 percent registered in April.
The Employment Index increased 1.1 percentage points to 52.4 percent from the April reading of 51.3 percent and indicates growth for the third consecutive month and at a faster rate. The Prices Index increased 0.6 percentage point from the April reading of 60.8 percent to 61.4 percent, indicating prices increased at a faster rate in May when compared to April.
According to the NMI®, 17 non-manufacturing industries (out of 18 — Ed.) reported growth in May.
All three GDP drivers (production, orders, and backlog) were expansionary. Backlog was slightly in contraction in April, but went from that month’s 49.0% to 54.0% in May.
This is good news, but probably doesn’t do anything to alter the second-quarter GDP estimate write-downs noted here.