May is shaping up to as challenging month for reading the macro tea leaves in an effort to gauge how tariffs are affecting the US economy. Tomorrow’s payrolls report from the Labor Department may provide clarity. Meanwhile, the early profile for last month is a study in contrasts.
Daily Archives: June 5, 2025
Macro Briefing: 5 June 2025
US services sector unexpectedly contracted slightly in May, according to survey data via ISM Services Index. The index dropped to 49.4 last month, just below the neutral 50 mark, easing to the lowest level since June 2024. Another survey of the services sector paints a brighter profile: the S&P Global US Services PMI posted a firmer pace of moderate growth last month. “That said, the improvements come from a low base, following a very gloomy April, which saw growth nearly stall as confidence sank to a two-and-half year low,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.
