US: ISM Services PMI edges higher to 51.9 in April vs. 51.2 expected

• US ISM Services PMI improved modestly in April.
• US Dollar Index stays deep in negative territory near 101.50. 

The business activity in the US service sector continued to expand at a modest pace in April with the ISM Services PMI edging higher to 51.9 from 51.2 in March. This reading came in slightly better than the market expectation of 51.8.

Further details of the publication revealed that the Prices Paid Index ticked up to 59.6 from 59.5 and the Employment Index declined to 50.8 from 51.3.

Assessing the survey's findings, “there has been a slight uptick in the rate of growth for the services sector, due mostly to the increase in new orders and ongoing improvements in both capacity and supply logistics," noted Anthony Nieves, Chair of the Institute for Supply Management (ISM) Services Business Survey Committee. "The majority of respondents are mostly positive about business conditions; however, some respondents are wary of potential headwinds associated with inflation and an economic slowdown.”

Market reaction

The US Dollar stays under selling pressure after this report and the US Dollar Index was last seen losing 0.45% on the day at 101.50.