ISM non-manufacturing index rose to 45.4 in May, up from 41.8, slightly above expectation of 43.0. Production improved notably from 26.0 to 41.0, so was new orders, from 32.9 to 41.0. Employment edged up from 30.0 to 31.8. But these three components remained well below 50 handle.
ISM also noted: “The past relationship between the NMI® and the overall economy indicates that the NMI® for May (45.4 percent) corresponds to a 1.1-percent decrease in real gross domestic product (GDP) on an annualized basis.”