Services industries grow in May

The latest US economic indicators continue to point towards growth. Bloomberg reports on Thursday:

Service industries in the U.S. expanded for a fifth month and factory orders rose, pointing to a broadening economic recovery that’s generating more jobs.

The Institute for Supply Management’s index of non- manufacturing businesses, which makes up almost 90 percent of the economy, held at 55.4 for a third month in May. Readings above 50 signal expansion. Bookings at factories rose 1.2 percent in April, a Commerce Department report showed...

The number of Americans filing first-time claims for jobless benefits last week fell to 453,000, a level that signals firings remain elevated even as employment grows, according to figures from the Labor Department today. Data from ADP Employer Services showed companies added 55,000 workers to payrolls in May, the fourth consecutive increase.

Data from the eurozone were mixed though. Bloomberg reports an improvement in services activity.

Growth in Europe’s services and manufacturing industries slowed less than initially estimated in May.

A composite index based on a survey of euro-area purchasing managers in both industries fell to 56.4 from 57.3 in April, London-based Markit Economics said today. That’s above an initial estimate of 56.2 published on May 21...

An index of services, which account for about 60 percent of the euro region’s gross domestic product, rose to 56.2 in May from 55.6, Markit said...

However, Reuters reports that retail sales in the euro area plunged in April.

Euro zone retail sales fell sharply in April, missing expectations for a small monthly rise, data showed on Thursday, as uncertainty over jobs and government spending curbed consumer demand.

The European Union's statistics office said euro zone retail sales, a good indication of households' propensity to spend, fell 1.2 percent month-on-month, the deepest fall since October 2008, for a 1.5 percent year-on-year drop.

Reuters also reports that the UK services PMI edged up in May.

Growth in the services sector held broadly steady in May, a survey showed on Thursday, but worries about an impending public spending squeeze led to a drop in hiring and a sharp slowdown in new business.

The Markit/CIPS services PMI headline activity index nudged up to 55.4 in May after a surprise drop to 55.3 in April when disruption from Iceland's volcanic ash cloud pushed growth to its lowest since January.