May 2021 ISM and Markit Services Surveys Improve And Remain Well Into Expansion The ISM improved and remained in expansion whilst the Markit PMI improved and now is at record highs. Analyst Opinion of the ISM and Markit Services Survey With the economy reopening, it comes as no surprise that both of these indices are well into expansion. From Econoday: Stronger client demand spurs sharper output expansion Cost burdens rise at quickest pace on record Further steep increase in employment despite hiring May PMI™ data indicated the fastest rise in business activity since data collection for the series began in October 2009. The unprecedented expansion in output was supported by a marked increase in new business, in turn buoyed by the quickest rise in new export orders for nine months. Greater business requirements resulted in a further sharp rise in employment. That said, the pace of job creation softened as firms reported difficulties filling vacancies. Strain on capacity was also reflected in another monthly rise in backlogs of work. At the same time, the rate of input cost inflation accelerated to a series high amid ongoing supplier price hikes. In an effort to pass on greater costs, service providers raised their charges at an unprecedented pace.