US Services PMI Weakens, Dollar Remains Stronger
US service sector activity slowed in June. The ISM Services PMI fell to 54.0 from 54.5 the previous month. This figure matched analysts' expectations and still indicates that the US service sector remains in the expansion zone.
Despite the slowdown, this data does not indicate a significant weakening. As long as the PMI remains above 50, business activity is still considered growing. However, the decline from the previous month signals that the service sector's momentum is starting to lose steam.
Among the inflation components, the Prices Paid Index fell to 67.7 from 71.3. This decline indicates that price pressures are starting to ease. Meanwhile, the Employment Index rose to 51.2 from 47.9, indicating that labor conditions in the service sector are starting to improve moderately. However, the New Orders Index fell to 55.1 from 57.3, indicating that new demand is starting to weaken.
Market reaction showed that the US dollar remained positive. The dollar index (DXY) rose again above 101.00. For the market, this data paints a mixed picture: service activity slowed slightly and price pressures eased, but service sector employment still showed improvement.
Source: Newsmaker.id
