Investing.com - Service sector activity in the U.S. grew at a slower pace than expected in June, one month after expanding at the weakest rate in more than a year, industry data showed on Monday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index inched up to 56.0 last month, up from 55.7 in May but below forecasts for a reading of 56.2.
The Non-Manufacturing Business Activity Index increased to 61.5, which is 2.0 points higher than the May reading of 59.5.
The New Orders Index registered 58.3, 0.4 points higher than the reading of 57.9 registered in May.
The Employment Index decreased 2.6 points to 52.7 from the May reading of 55.3, while the Prices Index decreased 2.9 points from the May reading of 55.9 to 53.0.
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, 15 non-manufacturing industries reported growth in June. The majority of respondents’ comments are positive about business conditions and the economy.
EUR/USD was trading at 1.1044 from around 1.1036 ahead of the release of the data, GBP/USD was at 1.5562 from 1.5555 earlier, while USD/JPY was at 122.64 compared to 122.66 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.57, compared to 96.64 ahead of the report.
Meanwhile, U.S. stock markets were lower after the open. The Dow 30 lost 0.6%, the S&P 500 shed 0.55%, while the Nasdaq Composite declined 0.45%.
Elsewhere, in the commodities market, gold futures traded at $1,165.50 a troy ounce, compared to $1,164.90 ahead of the data, while crude oil traded at $54.36 a barrel from $54.25 earlier.