Investing.com - Service sector activity in the U.S. fell more than expected in March, although it still registered an 87th consecutive month of growth, industry data showed on Wednesday.
In a report, the Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) dropped to 55.2 in March from the prior month’s reading of 57.6.
Analysts had expected the index to decline to only 57.0 last month.
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 58.9 last month, 4.7 points lower than February’s reading of 63.6. Analysts had forecast it to fall to 61.5.
The New Orders Index registered 58.9 in March, 2.3 points lower than the reading of 61.2 in the previous month.
The Employment Index declined 3.6 points to 51.6 last month from February’s reading of 55.2.
The Prices Index decreased 4.2 points to 53.5 in March from the prior month’s reading of 57.7.
“The majority of respondents’ comments indicate a positive outlook on business conditions and the overall economy,” the ISM said in the release.
“There were several comments about the uncertainty of future government policies on health care, trade and immigration, and the potential impact on business," it added.
Following the report, EUR/USD was unchanged at 1.0659 compared to before the release, GBP/USD was at 1.2477 from 1. 2475 earlier, while USD/JPY was at 111.28 from 111.41 prior to the publication.
The US dollar index, which tracks the greenback against a basket of six major rivals, traded at 100.53 compared to 100.56 prior to the release.
Meanwhile, U.S. stock markets were trading higher after the open. The Dow 30 gained 0.84%, the S&P 500 rose 0.68%, while the Nasdaq Composite traded up 0.43%.
Elsewhere, in the commodities market, gold futures traded at $1,248.35 a troy ounce, compared to $1,247.25 ahead of the data, while crude oil traded at $51.85 a barrel from $51.77 earlier.