by John Carney
Breitbart.com
The U.S. service sector roared back to life in May, painting a brighter picture for economic growth but dimming hopes for a rate cut from the Federal Reserve.
The Institute for Supply Management’s index of the services sector jumped to 53.8 percent from 49.4 percent in April, the highest reading in nine months, according to data released Wednesday. The robust rebound, driven by strong new orders and a surge in export activity, points to economic resilience despite a Fed interest rate policy aimed at restricting activity.
Economists had anticipated a modest rise to 50.7, but the actual figures blew past expectations, marking a significant shift from April’s dip into contraction territory—the first since December 2022. Numbers above 50 percent indicate expansion, suggesting that the sector is firmly back on a growth trajectory.