- The US ISM Services PMI dipped in May.
- The DXY Dollar Index pulled back below 104.00 as an initial reaction.
Business activity in the US service sector continued to expand, albeit at a more moderate pace that in April, with a ISM services PMI that fell to 50.3 points in May from 51.9 in April. This reading stood below market expectationswho expected 51.5.
Other data from the publication revealed that the index of prices paid fell to 56.2 from 59.6 and the employment index fell to 49.2 from 50.8, showing a contraction in the sector.
Commenting on the data, “there has been a setback in the growth rate of the service sector. This is mainly due to the decrease in employment and the continuous improvements in delivery times (which translates into a decrease in the rate of deliveries to suppliers) and in the capacitywhich are in many ways the product of sluggish demand,” said Anthony Nieves, Chairman of the Utilities Survey Committee at the Institute for Supply Management (ISM).”
Most of the respondents indicate that business conditions are currently stable; however, there are concerns regarding the slowdown in the economy“added Nieves.
Market reaction
The Dollar lost strength on this report and the DXY Dollar Index is in negative territory, slightly below 104.00 as an initial reaction.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
