US: ISM Services PMI edges lower to 62.7 in April vs. 64.3 expected
|- ISM Services PMI edged slightly lower in April.
- US Dollar Index posts modest daily gains above 91.30 after the report.
The economic activity in the US service sector continued to expand in April albeit at a softer pace than it did in March with the ISM Services PMI declining to 62.7 from 63.7. This reading missed the market expectation of 64.3.
Further details of the publication showed that the New Orders Index fell to 63.2 from 67.2, the Employment Index edged higher to 58.8 from 57.2. Finally, the Prices Paid Index jumped to its highest level since July 2008 at 76.8.
Commenting on the data, "there was slowing growth in the services sector in April; however, the rate of expansion is still strong," said Anthony Nieves, Chair of the Institute for Supply Management Services Business Survey Committee.
"Respondents' comments indicate that pent-up demand is continuing," Nieves added. "Production-capacity constraints, material shortages, weather and challenges in logistics and human resources continue to affect deliveries, which has resulted in a reduction of inventories."
Market reaction
The US Dollar Index inched higher after this report and was last seen gaining 0.08% on the day at 91.35.
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