Investing.com - Service sector activity in the U.S. grew in line with market expectations in March, easing concerns over the economic outlook, industry data showed on Monday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index slipped to 56.5 last month, in line with forecasts and down from a reading of 56.9 in February.
The New Orders Index registered 57.8, 1.1 points higher than the reading of 56.7 registered in February.
The Employment Index increased 0.2 points to 56.6 from the February reading of 56.4 and indicates growth for the 13th consecutive month.
The Prices Index increased 2.7 points from the February reading of 49.7 to 52.4, indicating prices increased in March after three consecutive months of decreasing.
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.
According to the report, 14 non-manufacturing industries reported growth in March. The majority of respondents’ comments reflected stability and are mostly positive about business conditions and the overall economy.
EUR/USD was trading at 1.1019 from around 1.1027 ahead of the release of the data, GBP/USD was at 1.4961 from 1.4961 earlier, while USD/JPY was at 119.06 compared to 118.99 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.67, compared to 96.59 ahead of the report.
Meanwhile, U.S. stock markets turned modestly higher after the open. The Dow 30 tacked on 0.1%, the S&P 500 inched up 0.1%, while the Nasdaq Composite advanced 0.1%.
Elsewhere, in the commodities market, gold futures traded at $1,218.50 a troy ounce, compared to $1,219.10 ahead of the data, while crude oil traded at $50.30 a barrel from $49.95 earlier.