US: ISM Services PMI edges lower to 56.9 in August vs. 57 expected

• ISM Services PMI edged slightly lower in August, remained in expansion territory.
• US Dollar Index clings to modest daily gains around 92.80 after the data.

The economic activity in the US' service sector continued to expand at a robust pace in August with the Institute for Supply Management's (ISM) Services PMI arriving at 56.9. This reading, however, came in lower than July's print of 58.1 and missed the market expectation of 57.

Further details of the publication revealed that the New Orders Index fell to 56.8 from 67.7, the Employment Index improved to 47.9 from 42.1 and the Prices Paid Index climbed to 64.2 from 57.6 to mark the highest reading since November 2018.

Commenting on the data, "respondents' comments are mostly optimistic and industry-specific about business conditions and the economy as businesses are starting to reopen," said Anthony Nieves, Chair of the Institute for Supply Management (ISM) Services Business Survey Committee. "Industries that have not reopened remain concerned about the ongoing uncertainty. There is a challenge with capacity and logistics due to the pandemic and the impact on deliveries and order fulfillment."

Market reaction

The US Dollar Index largely ignored this report and was las seen gaining 0.15% on the day at 92.80.