US: ISM Services PMI declines to 56.7 in September vs. 56 expected

• Business activity in the US service sector continued to expand in September.
• US Dollar Index continues to push higher in the American session.

The business activity in the US service sector expanded at a slightly softer pace in September than it did in August with the ISM Services PMI declining to 56.7 from 56.9. This reading, however, came in better than the market expectation of 56.

Further details of the publication revealed that the Employment Index improved to 53 from 50.2 and the Prices Paid Index declined to 68.7 from 71.5. Finally, the New Orders Index edged lower to 60.6 from 61.8.

Commenting on the data, "the services sector had a slight pullback in growth for the month of September due to decreases in business activity and new orders," said Anthony Nieves, Chair of the ISM Services Business Survey Committee.

"Employment improved and supplier deliveries slowed at a slightly slower rate," Nieves added. "Based on comments from Business Survey Committee respondents, there have been improvements regarding supply chain efficiency, operating capacity and materials availability; however, performance remains less than ideal."

Market reaction

The US Dollar Index extended its rally after this report and was last seen rising 1.3% on the day at 111.62.