US: ISM Services PMI declines to 53.6 in September as expected

• US ISM Services PMI declines in September to 53.6 from 54.5
• US Dollar Index holds to daily losses around 106.75.

The economic activity in the US service sector continued to expand in September, for the ninth consecutive month, with the ISM Services PMI falling from 54.5 to 53.6. This reading came in line with market expectations. 

Further details of the publication revealed that the Employment Index fell from 54.7 to 53.4; while the Prices Paid Index remained at 58.9. 

“There has been a slight pullback in the rate of growth for the services sector, which is attributed to slower rates of growth in the New Orders and Employment indexes. The majority of respondents remain positive about business conditions; moreover, some respondents indicated concern about potential headwinds,” explained Anthony Nieves, ISM Services PMI Chair. 

Market reaction

Earlier on Wednesday, the ADP report came in below expectations and weighed on the US Dollar Index. Later, the final S&P Global Services reading was revised slightly lower from its preliminary reading. Following the release of the ISM Services PMI, the DXY (US Dollar Index) remained around 106.75, in negative territory for the day.