- The ISM Services PMI remained in expansionary territory above 50 in August.
- The US Dollar Index remains sideways on the day above 101.00.
Economic activity in the US services sector expanded at a moderate pace in August, with the ISM Services PMI rising to 51.5 from 51.4 in July. This reading was above the market expectation of 51.1.
Other details of the report showed that the Prices Paid Index, the inflation component, rose to 57.3 from 57, while the Employment Index declined to 50.2 from 51.1.
In assessing the survey results, “low to moderate growth was cited in many industries, while high costs and interest rate pressures were often cited as factors negatively impacting business performance and driving weakness in sales and traffic,” said Steve Miller, Chairman of the Institute for Supply Management (ISM) Service Business Survey Committee.
“Although the Inventory Index increased by 3.1 percentage points into expansion territory in August, many respondents indicated that their companies are still actively managing to reduce their inventories,” Miller added.
Market reaction
The US Dollar Index recovered modestly on the immediate reaction to the PMI data and was last seen trading sideways on the day at 101.24.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
