Economic Report: U.S. economy’s growth slows in May due to inflation and weaker demand, S&P finds

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The numbers:

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.

The Dow Jones Industrial Average

and S&P 500

fell in Tuesday trades.