The survey of business activity improved marginally in May, but was otherwise unremarkable. Since the service sector is far more important than the manufacturing sector, this partially offsets the weaker trend in the manufacturing sector.
The prices paid index was neutral, just as it was for the manufacturing sector.
The employment index also was neutral, just as it was for the manufacturing sector. This reflects a lack of business confidence in the future, and portends more of the same kind of growth we've seen to date: modest to moderate.
Conditions in the U.S. service sector are OK, while the eurozone continues to struggle with contractionary influences.