- Lynn Franco, director of economic indicators at Conference Board
US core durable goods orders rose more than expected in April, increasing 0.5%, surpassing economists' median forecast for a 0.3% gain, and compared with an upwardly revised March figure of 0.6%. Meanwhile, total durable goods orders pulled down 0.5% in April, in line with expectation.
US services sector activity slowed for the third consecutive month in May, with the headline indicator booking the lowest level since January. According to Markit, its preliminary services PMI declined to 56.4 in May, compared with the final reading of 57.4 in the previous month. The services sector is an important part of the US economy, as services account for more than 79% of the nation's private-sector GDP. Service jobs make up more than 80% of America's private-sector employment. The Markit data suggest annual GDP growth could accelerate to around 3% in the second quarter, while the economy adds around 200,000 jobs a month. Meanwhile, the mood among Americans slightly improved in May, with the headline measure climbing closer to its recent multi-year peak. The Conference Board's index of consumer confidence rose to 95.4 in May from a revised reading of 94.3 the month before. Data suggest that US consumers improved their short-term outlook for both employment and income prospects.
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