Recent indicators suggest a slowdown in the U.S. economy, with the Institute for Supply Management’s services PMI dropping to 49.9 in May from 51.6 in April. This key measure of the service sector’s health indicates contraction when below 50, marking the fourth time in five years the sector has contracted. Employment growth in the private sector also remains weak, with only 37,000 jobs added in May, the lowest monthly total in over two years, according to ADP data. Economist Nela Richardson noted hesitancy due to widespread uncertainty, while Carrie Freestone of RBC Capital Markets highlighted a hiring paralysis amid unclear economic prospects. Additionally, unemployment claims rose, with 1.904 million workers filing for benefits in the week ending May 24, nearing the highest levels since November 2021. Imports have also fallen to their lowest since 2009, reflecting economic policy impacts. While the ISM data suggests a pause rather than a sharp contraction, uncertainty continues to weigh on economic activity.
— new from El Tiempo Latino
