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U.S. ISM non-manufacturing PMI declines unexpectedly

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Forexpros - Service sector activity in the U.S. declined unexpectedly in July, industry data showed on Wednesday.

In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 52.7 in July from 53.3 in June.

Analysts had expected the index to ease up to 53.8 in July.

On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.

The New Orders Index registered 49.2, indicating contraction for the first time since June 2009, when it registered 48.9.

The rate of increase in prices slowed for the third consecutive month, dropping 9.0 points in July to 59.

Following the release of the data, the U.S. dollar was down against the euro, with EUR/USD gaining 0.65% to trade at 1.4297.

Meanwhile, U.S. stock markets erased gains after the data. The Dow Jones Industrial Average fell 0.25%, the S&P 500 index retreated 0.2%, while the Nasdaq Composite index eased down 0.05%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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