ISM survey: US service industry unexpectedly contracts in May, inflation heats up

According to BlockBeats, on June 4th, the US service industry experienced its first contraction in nearly a year in May, with enterprise input prices rising, indicating that the US economy may still experience a period of very slow growth and high inflation. The Institute for Supply Management (ISM) announced on Wednesday that the US non manufacturing PMI fell to 49.9, breaking below the 50 mark and the lowest level since June 2024. The new order index decreased from 52.3 in April to 46.4, possibly due to a weakened boost from the leading advantage related to tariffs. Service industry customers believe that inventory is too high compared to demand, which is not a good sign for short-term economic activity. The delivery performance of suppliers continues to deteriorate, with factory delivery times extending, indicating a tight supply chain that may push up inflation due to supply shortages. Enterprises are also seeking to shift tariffs onto consumers. The service investment payment price index surged from 65.1 in April to 68.7, the highest level since November 2022, further strengthening this point. Most economists expect that the impact of tariffs on inflation and employment may become apparent in the so-called hard economic data during the summer. (Golden Ten)