The Institute for Supply Management said its Non-Manufacturing Index (NMI) registered 53.7% in May, 0.2 percentage point higher than the 53.5% registered in April, indicating continued growth at a slightly faster rate. Economic activity in the non-manufacturing sector grew in May for the 29th consecutive month.

The Non-Manufacturing Business Activity Index registered 55.6%, which is 1 percentage point higher than the 54.6% reported in April, reflecting growth for the 34th consecutive month, according to Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee.

The New Orders Index increased by 2 percentage points to 55.5%, and the Employment Index decreased by 3.4 percentage points to 50.8%, indicating continued growth in employment at a slower rate. The Prices Index decreased 3.8 percentage points to 49.8%, indicating lower month-over-month prices for the first time since July 2009. The majority of the respondents’ comments are positive and optimistic about business conditions and the direction of the economy.

The 13 non-manufacturing industries reporting growth in May – listed in order – are: Information; Transportation & Warehousing; Accommodation & Food Services; Management of Companies & Support Services; Educational Services; Wholesale Trade; Construction; Retail Trade; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Finance & Insurance; Utilities; and Public Administration.

The three industries reporting contraction in May are: Arts, Entertainment & Recreation; Health Care & Social Assistance; and Mining.

To read the full ISM report click here.