US: Markit Services PMI improves to 58.2 in October vs. 55.1 expected
|- Markit Services PMI and Composite PMI surpassed expectations in October.
- US Dollar Index continues to push lower toward 93.50.
The business activity in the US service sector expanded at a more robust pace than expected in early October with IHS Markit's Services PMI rising to 58.2 (preliminary) from 54.9 in September. This reading surpassed analysts' estimate of 55.1.
Meanwhile, the Composite PMI improved to 57.3 from 55 and came in better than the market consensus of 54.7.
Commenting on the data, "October saw resurgent service sector activity as COVID-19 case numbers continued to fall, marking an encouragingly strong start to the fourth quarter for the economy," said Chris Williamson, Chief Business Economist at IHS Markit. "Hiring has likewise picked up as firms have been encouraged to expand capacity to meet rising demand."
Market reaction
The US Dollar Index edges lower after this report and was last seen losing 0.2% on the day at 93.57.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.