U.S. businesses expanded at the slowest pace in several months, a pair of surveys showed, reflecting the effects of high inflation, ongoing supply shortages and some softening in customer demand.
The S&P flash U.S. services index drop to a three-month low of 53.5 in May from 55.6 in the prior month.
The flash U.S. manufacturing index, meanwhile, slid to a three-month low of 57.5 from 59.2.
Any number over 50 signifies expansion, and numbers above 55% are exceptional.
“The early survey data for May indicate that the recent economic growth spurt has lost further momentum.,” said Chris Williamson, chief business economist at S&P Markit.
“Companies report that demand is coming under pressure from concerns over the cost of living, higher interest rates and a broader economic slowdown,” he added.