The economic activity in the US' service sector expanded at a robust pace in July with the Institute for Supply Management's (ISM) Non-Manufacturing PMI rising from 57.1 in June to 58.1. This reading beat the market expectation of 55 by a wide margin.
Further details of the publication revealed that the New Orders Index climbed to 67.7, the Employment Index edged lower from 43.1 to 42.1 and the Prices Paid Index fell from 62.4 to 57.6.
Commenting on the data, "respondents remain concerned about the pandemic; however, they are mostly optimistic about business conditions and the economy as businesses continue to reopen," said Anthony Nieves, Chair of the Institute for ISM Services Business Survey Committee. "Sentiment varies across industries, as they are impacted differently."
Market reaction
The US Dollar Index failed to stage a rebound after this report and was last seen losing 0.7% on the day at 92.61.
Related articles
US Data Analysis: Big jobs number? Negative NFP looks more likely, trends could extend in gold, dollar.
"Big jobs number on Friday" – said President Donald Trump to Fox News and the public ahead of July's all-important Non-Farm Payrolls report.
It doesn't look that way – the NFP could be a small number or even negative.
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