US sees non-manufacturing sector better, but factory orders disappoint

The US ISM non-manufacturing purchasing managers' index beat estimates in May, rising from 53.1 to 53.7, beating forecasts of a jump to 53.5.

However factory orders failed to recover as much as hoped, only rising 1.0 per cent in April from a 4.9 per cent fall last month (revised from -4.0 per cent). Analysts had hoped for growth of 1.5 per cent.

Alarmingly, the ISM employment index has fallen for the fourth straight month.