US: ISM Services PMI declines to 61.7 in August vs. 61.5 expected
|- US ISM Services PMI fell modestly in August.
- US Dollar Index consolidates daily losses above 92.00.
The economic activity in the US service sector continued to expand in August, albeit at a softer pace than it did in July, with the ISM Services PMI declining to 61.7 from the record-high set at 64.1. This reading came in slightly higher than the market expectation of 61.5.
Further details of the publication revealed that the Prices Paid Index declined to 75.4 from 82.3 and the Employment Index stayed virtually unchanged at 53.7. Finally, the New Orders Index edged lower to 63.2 from 63.7.
Commenting on the data, "there was a pullback in the rate of expansion in the month of August; however, growth remains strong for the services sector," noted Anthony Nieves, Chair of the Institute for Supply Management (ISM) Services Business Survey Committee. "The tight labor market, materials shortages, inflation and logistics issues continue to cause capacity constraints."
Market reaction
This report doesn't seem to be having a significant impact on the USD's performance against its rivals. As of writing, the US Dollar Index was down 0.1% on a daily basis at 92.12.
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