Investing.com - Service sector activity in the U.S. grew at a slower pace than expected in July, industry data showed on Wednesday.
In a report, the Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) fell to 55.5 last month from 56.5 in June. Analysts had expected the index to drop to 56.0.
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.
The Non-Manufacturing Business Activity Index decreased to 59.3, 0.2 points lower than the June reading of 59.5. This was the 84th consecutive month of growth for the sector. Analysts had forecast it to remain steady at 59.5.
The New Orders Index registered 60.3, 0.4 points higher than the reading of 59.9 in June.
The Employment Index decreased 1.3 points to 51.4 from the June reading of 52.7.
The Prices Index decreased 3.6 points from the June reading of 55.5 to 51.9. This was the fourth consecutive increase in prices.
The report noted that the majority of the respondents’ comments reflected stability and continued growth for their respective companies and a positive outlook on the economy.
In an immediate reaction, EUR/USD was trading at 1.1178 from around 1.1180 ahead of the release of the data, GBP/USD was at 1.3312 from 1.3310 earlier, while USD/JPY was at 101.22 from 101.20 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was unchanged at 95.34.
Meanwhile, U.S. stock markets were slightly higher after the open. The Dow 30 gained 0.08%, the S&P 500 inched up 0.06%, while the Nasdaq Composite rose 0.10%.
Elsewhere, in the commodities market, gold futures traded at $1,365.35 a troy ounce, compared to $1,365.55 ahead of the data, while crude oil traded at $40.08 a barrel from $39.91 earlier.