- US ISM Services PMI rose more than expected in May.
- US Dollar Index edges higher toward 104.50 after the data.
Business activity in the US service sector expanded in May, with the ISM Services PMI recovering to 53.8 from 49.4 in April. This reading came in above the market expectation of 50.8.
Other details of the report showed that the Prices Paid Index, the inflation component, edged lower to 58.1 from 59.2, while the Employment Index recovered to 47.1 from 45.9.
Assessing the survey's findings, "the increase in the composite index in May is a result of notably higher business activity, faster new orders growth, slower supplier deliveries and despite the continued contraction in employment," said Anthony Nieves, Chair of the Institute for Supply Management Services Business Survey Committee, and continued:
"Survey respondents indicated that overall business is increasing, with growth rates continuing to vary by company and industry. Employment challenges remain, primarily attributed to difficulties in backfilling positions and controlling labor expenses. The majority of respondents indicate that inflation and the current interest rates are an impediment to improving business conditions."
Market reaction
The US Dollar Index recovered from session lows following the upbeat PMI data and was last seen rising 0.2% on the day at 104.35.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in tight range near 1.0400 ahead of US data
EUR/USD moves sideways at around 1.0400 on Thursday. The pair struggles to gain traction as US President Trump's tariff threats against the EU and expectations for a dovish ECB outlook make it difficult for the Euro to find demand ahead of US data.
GBP/USD turns lower to near 1.2300 as US Dollar stabilizes ahead of data
GBP/USD has come under renewed selling pressure and battles 1.2300 in the European trading hours on Thursday. The pair meets supply as the US Dollar stabilizes and traders digest US President Trump's tariff talks, gearing up for the mid-tier US economic data later in the day.
Gold price sticks to negative bias, remains close to multi-month peak set on Wednesday
Gold price (XAU/USD) remains depressed through the first half of the European session on Thursday and for now, seems to have snapped a three-day winning streak to its highest level since early November touched the previous day.
Bitcoin edges below $102K ahead of mid-tier US data and Trump’s tariff threats
Bitcoin’s (BTC) price continues to decline, trading below $102,000 at the time of writing on Thursday after falling 2.3% the previous day. Later in the day, BTC could expect volatility after the US weekly Initial Jobless Claims data release.
Netflix posts record quarter, as Trump talks tariffs on China
There has been a positive tone to risk this week, as the market digests Trump 2.0. However, Trump is not the only show in town. Earnings reports are also a key driver of stock indices, and the news is good.
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.