The U.S. Services PMI came in at 56.1, below the forecast of 57.9 and the previous month's 58.8. The reading points to slower growth in the services sector. The weaker data may put downward pressure on the U.S. dollar.
The latest U.S. Services Purchasing Managers' Index registered 56.1, short of the forecast of 57.9. The miss indicates slower growth in the services sector.
That result also declined from 58.8 in the previous month. According to the source, that suggests a slowing pace of expansion, which could have implications for the broader economy.
Markit Economics publishes the Services PMI monthly, and it draws on surveys of over 400 private-sector executives. A reading of 50 signifies no change from the previous month, while a reading above 50 indicates expansion and below 50 suggests contraction.
A stronger-than-forecast reading is typically seen as supportive for the U.S. dollar. By contrast, the weaker-than-expected data may exert downward pressure on the currency, reflecting concerns over the sector's growth momentum.
The services sector makes up a significant portion of the U.S. economy, and investors and policymakers closely watch its performance.
Source: Investing.com
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