Forexpros – Service sector activity in the U.S. fell more-than-expected in April, but expanded for the 28th consecutive month, industry data showed on Thursday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager’s index declined by 2.5 points to 53.5 in April from a reading of 56.0 in March.
Analysts had expected the index to decline by 0.5 points to 55.5 in March.
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 decreased by 5.3 points to 53.5 from 58.8, while the Employment Index decreased by 2.5 points to 54.2 from 56.7, indicating continued growth in employment at a slightly slower rate.
The Prices Index collapsed by 10.3 points to 53.6 from 63.9, indicating prices increased at a significantly slower rate in April when compared to March.
According to the NMI, 15 non-manufacturing industries reported growth in April. Respondents’ comments affirm the slowing rate of growth. In addition, they remain concerned about rising fuel costs and the impact on shipping, transportation and petroleum-based product costs.
Following the release of the data, the U.S. dollar was fractionally lower against the euro, with EUR/USD easing up 0.1% to hit 1.3171.
Meanwhile, U.S. stock markets turned mildly lower. The Dow Jones Industrial Average slipped 0.2%, the S&P 500 index declined 0.25%, while the Nasdaq Composite index shed 0.25%.
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