Global service sector buoyed by jobs growth

<p>Kia ora,</p><p>Welcome to Tuesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the international edition from Interest.co.nz.</p><p>And today we lead with news the <a href="https://www.pmi.spglobal.com/Public/Home/PressRelease/f8065982371144b1926f6539595ddae7" target="_blank"><strong>global service sector</strong></a> is expanding faster and keeping the long-awaited economic retreat at bay.</p><p>First in the US, there were two PMIs out for their services sector. The widely-watched <a href="https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/services/may/" target="_blank"><strong>ISM</strong></a> one retreated from a modest expansion to a minor expansion in May. This wasn't expected because a faster expansion was anticipated. (However new order growth was notably strong.) The internationally benchmarked <a href="https://www.pmi.spglobal.com/Public/Home/PressRelease/3183406116e0481b881fc34e03a788af" target="_blank"><strong>Markit</strong></a> one rose to a moderate expansion, but not by as much as was anticipated. (New order growth as a feature of this one too.) Markets took their cues from the ISM one.</p><p>But there was little growth in <a href="https://www.census.gov/manufacturing/m3/prel/pdf/s-i-o.pdf" target="_blank"><strong>US factory orders</strong></a> in April. They did grow from March but it was modest, but from a year ago, they fell -1.1%. Given inflation in that period, that is a substantial retreat.</p><p>And this is reflected in American <a href="https://www.nada.org/nada/market-beat" target="_blank"><strong>May vehicle sales</strong></a> which were a bit of a disappointment. They ran at about a +15.0 mln annual rate and well down on the +16.1 mln annual rate in April. </p><p>Over the weekend, not only did the US Congress <a href="https://www.senate.gov/legislative/LIS/roll_call_votes/vote1181/vote_118_1_00146.htm" target="_blank"><strong>approve</strong></a> the debt-lim