• US Markit Services PMI came in lower than expected in June.
  • US Dollar Index continues to push lower toward 91.50.

The business activity in the US service sector continued to expand at a strong pace in June but lost momentum when compared to May with the Markit Services PMI declining to 64.8 from 70.4. This reading missed the market expectation of 70.

Further details of the publication revealed that the Composite PMI fell to 64.9 in June from 68.7 in May.

Commenting on the data, "the early PMI indicators point to further impressive growth of the US economy in June, rounding off an unprecedented growth spurt over the second quarter as a whole," noted Chris Williamson, Chief Business Economist at IHS Markit.

"Although price gauges have also slipped from May’s all-time highs, it’s clear that the economy continues to run very hot," Williamson added. "Prices charged for goods and services are still rising very sharply, record supply shortages are getting worse rather than better, firms are fighting to fill vacancies and manufacturers’ warehouse stocks are being depleted at a worrying rate as firms struggle to meet demand."

Market reaction

The US Dollar Index extends its daily slide after this report and was last seen losing 0.2% on the day at 91.52.

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