US services sectors growth stalls The US services sector grew at about the same pace in May as the previous month, indicating a loss of momentum in economic growth. The Institute for Supply Management's non-manufacturing index stood at 53.7, slightly above the 53.5 level in April. Analysts had expected a level of 53.5. The ISM surveys more than 375 firms in industries such as agriculture, mining, construction and transportation and asked about their thoughts on business activity, new orders and employment to compile the index. A downward revision to gross domestic product on Friday, together with a poor employment report from ADP, the private payrolls processing company, and a rise in new claims for unemployment insurance, damped any positive sentiment about the country's economic recovery. The index steadied in May, up slightly versus April and slightly above market expectations . . . Despite the small uptick, the second quarter to-date average of 53.6 is running below the first quarter average of 56.7," said Jonathan Basile, director of economics at Credit Suisse. Business activity, new orders and supplier deliveries were up, while employment was down. Notably, the employment index fell to a five-month low, echoing the news from last Friday's official jobs report," he added. Employers are exercising greater caution when it comes to hiring decisions against renewed uncertainty in the US, partly stemming from turmoil in the eurozone. The services report follows data from Monday that showed demand for manufactured goods unexpectedly declined in April as demand for cars, machinery and computers fell. Factory orders figures released earlier this week showed a fall of 0.6 per cent for the month, below analysts" forecasts of a 0.1 per cent rise. ISM data from last Friday showed factories tempered production and pared inventories in May as the global economy weakened. The manufacturing index registered a level of 53.5, below consensus estimates of 54 and the 54.8 recorded in April.