The business activity in the US service sector continued to expand, albeit at a more moderate pace than in April, with the ISM Services PMI declining to 50.3 in May from 51.9 in April. This reading came in below the market expectation of 51.5.

Further details of the publication revealed that the Prices Paid Index edged lower to 56.2 from 59.6 and the Employment Index dropped to 49.2 from 50.8.

Commenting on the data, "there has been a pullback in the rate of growth for the services sector. This is due mostly to the decrease in employment and continued improvements in delivery times (resulting in a decrease in the Supplier Deliveries Index) and capacity, which are in many ways a product of sluggish demand," said Anthony Nieves, Chair of the Institute for Supply Management (ISM) Services Business Survey Committee."

"The majority of respondents indicate that business conditions are currently stable; however, there are concerns relative to the slowing economy," Nieves added