Register a mild, positive data point for the U.S. economy. In May, the U.S. service sector slowed at a pace less than economists had expected.

The Institute for Supply Management announced Wednesday that its non-manufacturing or service index nudged lower to 51.7% in May from 52.0 in April. Readings above 50 indicate an expansion; below 50, a contraction. Hence, because the index remained above 50 in May, the expansion in the service sector continued for a second straight month, the ISM said. Economists surveyed by Bloomberg News had expected the services index to decline to 51.0 in May.

Thirteen of the ISM's service industries grew in May. The ISM added that members' comments in May reflected concern about business conditions, including rising costs, and the overall sluggish U.S. economy.

Economic Analysis: Many economists tend to place less emphasis on the ISM services index, compared to the capital-intensive manufacturing index. Still, the services index does provide helpful clues regarding the economy and the May statistic further confirmed that the U.S. at mid-year is experiencing very sluggish, region-specific growth, but not a contraction -- at least not yet. Credit conditions are tight, but credit availability has not been totally shut down. Corporations large and small are tightening their belts, but some business-to-business spending is occurring. Lay-offs are occurring, but so far, there is no tidal wave of layoffs.

The services industry in the United States unexpectedly expanded in April 2008, the Institute for Supply Management announced Monday.

The ISM's non-manufacturing index rose to 52 in April 2008 from 49.6 in March 2008. The services index had declined in the three months before April 2008.

Economists surveyed by Bloomberg News had expected the April 2008 survey to fall to 49.3. Readings below 50 indicate a contraction.

Conflicting economic data

Economist David H. Wang said Monday the services sector report adds another "counter conventional wisdom" data point to the current U.S. economic landscape. "When you add the services number with last week's rise in April [2008] factory orders, you have a complex economic picture right now," Wang said. "On the one hand, some economists will point to the housing slump, which is a legitimate head wind. On the other hand, others will point to services and factory indicators that say the economy is not as weak as many had thought it would be. It's a conflicted, muddled economic picture right now."

The U.S. services sector improved slightly in March 2008, but remained at levels indicating a contraction, the Institute of Supply Management announced Thursday.

The ISM Non-Manufacturing Index, which measures services, increased 0.3% to 49.6% in March 2008, a slight increase, but a reading still indicative of a contraction. Readings below 50% indicate a contraction; readings above it, expansion.

Economists surveyed by Bloomberg News had expected the ISM Non-Manufacturing Index to total 49.0% for March 2008. The index was at 49.3% in February 2008.

The new orders index increased 0.6% to 50.2%, while the employment index contracted for the third consecutive month, to 46.9%.

Yahoo! Inc.'s (NASDAQ: YHOO) fortunes seem to have shifted in the last few months, with purchases like BlueLithium and Zimbra firming up the company's strategy inside targeted consumer behavior (when it comes to online ads and purchases) and corporate email. In fact, those two acquisitions sound like knives in the collective backs of Google, Inc. (NASDAQ: GOOG) and Microsoft Corporation (NASDAQ: MSFT), respectively. Google's future revenue enterprise may rest on more efficiently connecting buyers and sellers, and Microsoft's presence in the corporate email market with its Exchange product is huge.

So, when I hear of Yahoo! starting to possibly de-emphasize the premium services that former CEO Terry Semel trumpeted from the top of his lungs back in 2002, it just shows how things have changed in the internet portal marketplace. No longer are customers willing to pay to receive services they can get elsewhere for free. Add that on top of the Google-led shift to advertising as a sole revenue source and away from a paid-customer model, and Yahoo! seems to finally be acknowledging that it may need to follow suit.

First up is the Yahoo! Music business, which runs a music subscription model (monthly paid service) that, according to sources, is not doing too well. With so many other competitors in the market for downloadable music, this comes as little surprise. I have to wonder how many resources have been dumped into Yahoo! Music thus far, or if it has ever made money? Marketing dollars and headcount will be moving into other strategic areas it appears, and I'll surmise that Yahoo! Music won't be the only premium (paid) service to come under the microscope soon.