Forexpros – Service sector activity in the U.S. declined unexpectedly in November, slumping to the lowest level since January 2010, industry data showed on Monday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager’s index fell by 0.9 points to 52.0 in November from 52.9 in October.
Analysts had expected the index to rise by 0.5 points to 53.4 in November.
This is the lowest reading since January 2010, when the index registered 50.7 points.
On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.
The New Orders Index increased by 0.6 points to 53.0, while the Employment Index dropped 4.4 points to 48.9, indicating contraction in employment after one month of growth.
Following the release of the data, the U.S. dollar held on to losses against the euro, with EUR/USD rising 0.48% to trade at 1.3457.
Meanwhile, U.S. stock markets remained sharply higher after the open. The Dow Jones Industrial Average jumped 1.15%, the S&P 500 index rallied 1.35%, while the Nasdaq Composite index gained 1.2%.
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