ISM Services Index Declines in May

An index of the U.S. economy’s service sector slipped in May from a month earlier but continued to show expansion, the Institute for Supply Management said Wednesday.

ISM’s monthly services index fell to a reading of 51.7, from 52 in April, the group said. The index hit a record low of 44.6 in January.

The services index measures non-manufacturing components of the economy. Figures of more than 50 indicate expansion; below that level shows contraction.

Analysts had expected the index to fall to 51, Bloomberg reported.

The services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.