US: ISM Services PMI declines to 60.1 in June vs. 63.5 expected
- US ISM Services PMI edged modestly lower in June.
- US Dollar Index stays in the positive territory near 92.40.
The economic activity in the US service sector continued to expand in June, albeit at a softer pace than it did in May, with the Institute for Supply Management (ISM) Services PMI declining to 60.1 from 64. This reading missed the market expectation of 63.5.
Further details of the publication revealed that the Prices Paid Index edged lower to 79.5 from 80.6, the Employment Index declined to 49.3 from 55.3. Finally, the New Orders Index fell to 62.1 from 63.9.
Commenting on the data, "the rate of expansion in the services sector remains strong, despite the slight pullback in the rate of growth from the previous month's all-time high," said Anthony Nieves, Chair of the ISM Services Business Survey Committee. "Challenges with materials shortages, inflation, logistics and employment resources continue to be an impediment to business conditions."
Market reaction
This report doesn't seem to be having a significant impact on the greenback's performance against its major rivals. As of writing, the US Dollar Index was up 0.2% on the day at 92.41.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
