Investing.com - Service sector activity in the U.S. unexpectedly strengthened in June, bolstering optimism over the U.S. economy, industry data showed on Thursday.
In a report, the Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) increased to 57.4 in June from the prior month’s reading of 56.9.
Analysts had expected the index to decline to 56.5 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 increased to 60.8 last month, 0.1 points above May’s reading of 60.7. That was in line with the consensus forecast
The New Orders Index registered 60.5 in June, 2.8 points higher than the reading of 57.7 in the previous month.
The Employment Index decreased 2.0 points to 55.8 last month from May’s reading of 57.8.
The Prices Index increased 2.9 points to 52.1 in June from the prior month’s reading of 49.2.
The ISM indicated that it was the 90th consecutive month of expansion of economic activity in the non-manufacturing sector.
“The non-manufacturing sector continued to reflect strength for the month of June”, ISM chair Anthony Nieves declared in the report.
“The majority of respondents’ comments are positive about business conditions and the overall economy," he added.
Following the report, EUR/USD was unchanged at 1.1395, GBP/USD was at 1.2930 from 1. 2927 earlier, while USD/JPY was at 113.10 from 113.05 prior to the publication.
The U.S. dollar index, which tracks the greenback against a basket of six major rivals, traded at 95.71 compared to 95.70 prior to the release.
Meanwhile, U.S. stock markets were trading lower after the open. The Dow 30 fell 127 points, or 0.59%, the S&P 500 lost 18 points, or 0.76%, while the Nasdaq Composite traded down 64 points, or 1.04%.
Elsewhere, in the commodities market, gold futures traded at $1,223.96 a troy ounce, compared to $1,225.08 ahead of the data, while crude oil traded at $45.95 a barrel from $45.87 earlier.