US: S&P Global Services PMI falls to 47.3 (final) in July

• US S&P Global Services PMI fell into contraction territory in July.
• US Dollar Index continues to fluctuate above 106.00 after the data. 

The business activity in the US service sector declined for the first time in over two years in July with the S&P Global Services PMI dropping to 47.3 from 52.7 in June. This reading came in slightly better than the market expectation and the flash estimate of 47.

Further details of the publication revealed that the Composite PMI fell to 47.7 in July from 52.3 in June.

Commenting on the survey's findings, "US economic conditions worsened markedly in July, with business activity falling across both the manufacturing and service sectors," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. "Excluding pandemic lockdown months, the overall fall in output was the largest recorded since the global financial crisis and signals a strong likelihood that the economy will contract for a third consecutive quarter."

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen trading flat on the day at 106.30.