- ISM Services PMI for January came in above the market expectation.
- US Dollar Index clings to strong gaily gains at around 104.50.
Business activity in the US service sector expanded at a stronger pace than anticipated in January, with the ISM Services PMI rising to 53.4 from 50.5 (revised from 50.6) in December to beat the market expectation of 52.0.
The Employment Index advanced to 50.5 from 43.8, while the Prices Paid Index - the inflation component - climbed to 64.0 from 57.4.
Assessing the survey's findings, "the overall growth rate increase in January is attributable to faster growth of the New Orders, Employment, and Supplier Deliveries indexes," said Anthony Nieves, Chair of the Institute for Supply Management (ISM) Services Business Survey Committee.
"The majority of respondents indicate that business is steady," Nieves added. "They are optimistic about the economy due to the potential impact of interest rate cuts; however, they are cautious due to inflation, associated cost pressures and ongoing geopolitical conflicts."
Market reaction
The US Dollar preserves its strength after this report. At the time of press, the US Dollar Index was up 0.55% on the day at 104.55.
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