US: ISM Services PMI falls to 53.6 in September, as expected

• US ISM services PMI declines in September to 53.6 from 54.5
• The Dollar Index remains with daily losses around 106.75.

Economic activity in the US services sector continued to expand in September, for the ninth consecutive month, although the ISM Services PMI recorded a drop from 54.5 to 53.6 points. This reading was in line with market expectations.

Other details of the publication revealed that the employment index fell from 54.7 to 53.4; while the Prices Paid Index remained at 58.9.

“There has been a slight decline in the growth rate of the services sector, which is attributed to the slowdown in growth rates of new orders and employment indices. Most respondents remain positive about business conditions; On the other hand, some respondents indicated concern about potential headwinds,” he explained. Anthony Nievespresident of the ISM services PMI.

Market reaction

Early Wednesday, the ADP report came in below expectations and weighed on the Dollar Index. Later, S&P Global’s final services PMI reading was revised slightly downward from its preliminary reading. After the publication of the ISM services PMI, the Dollar Index (DXY) remained around 106.75, in negative territory during the day.