AI Data Insight
In May 2026 (Q2 2026), the US ISM Services Business Activity Index rose from 55.9 in the previous month to 57.7, driving the overall Services PMI to outperform market expectations. However, behind the solid demand, the employment index contracted for the third consecutive month, and input prices reached a new high since August 2022. This indicates that businesses are facing the dual challenges of rising costs and hiring freezes, which may increase the pressure on the Federal Reserve to maintain high interest rates.