US: Markit Services PMI declines to 55.1 in August vs. 55.2 expected

Business activity in US private sector lost growth momentum in August.
US Dollar Index stays in the negative territory a little above 92.00.

Eren Sengezer FXStreet

The business activity in the US service sector expanded at a softening pace in August with IHS Markit's flash Services PMI falling to 55.1 from 59.9 in July. This print fell short of the market expectation and the flash estimate of 55.2.

Furthermore, the Composite PMI arrived at 55.4, the lowest reading since December 2020, to match the advanced estimate and analysts' forecast.

Commenting on the data, "growth slowed sharply in the US service sector in August, joining the manufacturing sector in reporting a marked cooling in demand and encountering growing problems finding staff and supplies," said Chris Williamson, Chief Business Economist at IHS Markit. "Jobs growth almost stalled among the surveyed companies in August and supplier lead times are lengthening at a near-record rate."

Market reaction

This report was largely ignored by market participants and the US Dollar Index was last seen posting small daily losses at 92.10.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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