Service Sector Activity Accelerated in the U.S. but Slowed in Euroland Last Month
June 3, 2011
U.S. service sector activity partly recovered in May according to the purchasing manager survey after a sharp slowdown in April. In Euroland, however, there was a slower pace of positive growth in May with only marginally rising activity in Ireland, Spain and Italy. The U.S. minus Euroland PMI spread for services therefore narrowed by 2.5 points to mius 1.4. This move brought into greater balance between manufacturing and non-manufacturing the shift that has occurred in Europe’s favor since January. Over those four months between January and May, the manufacturing spread fell 4.6 points from +3.5 to –1.1, and the services spread dropped 3.1 points from +3.5 to –1.4. The sum of the two spreads shown in the right-most column now stands at minus 2.5 compared to +7.0 in January.
America’s improvement in services last month was spearheaded by gains of 4.1 points in orders and 2.1 points in jobs. Euroland’s deterioration was led by Germany’s drop from 57.8 to 56.1 and Italy’s decline from 52.2 in April to a reading of 50.1 in May.
Copyright 2011 Larry Greenberg. All rights reserved. No secondary distribution without express permission.