Investing.com – Service sector activity in the U.S. dropped unexpectedly in April, industry data showed on Wednesday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 56.9 in April, compared to a reading of 57.3 in March.
Analysts had expected the index to ease up to 57.4 in April.
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 substantially by 11.4 points to 52.7. The Employment Index fell 1.8 points to 51.9, indicating growth in employment for the eighth consecutive month, but at a slower rate.
The Prices Index slipped 2 points to 70.1, indicating that prices increased at a slightly slower rate in April when compared to March.
Following the release of the data, the U.S. dollar was down against the euro, with EUR/USD jumping 0.66% to hit a fresh 17-month high of 1.4920.
Meanwhile, U.S. equity markets were broadly lower after the open. The Dow Jones Industrial Average slumped 0.6%, the S&P 500 index fell 0.62%, while the Nasdaq Composite index declined 0.2%.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 56.9 in April, compared to a reading of 57.3 in March.
Analysts had expected the index to ease up to 57.4 in April.
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 substantially by 11.4 points to 52.7. The Employment Index fell 1.8 points to 51.9, indicating growth in employment for the eighth consecutive month, but at a slower rate.
The Prices Index slipped 2 points to 70.1, indicating that prices increased at a slightly slower rate in April when compared to March.
Following the release of the data, the U.S. dollar was down against the euro, with EUR/USD jumping 0.66% to hit a fresh 17-month high of 1.4920.
Meanwhile, U.S. equity markets were broadly lower after the open. The Dow Jones Industrial Average slumped 0.6%, the S&P 500 index fell 0.62%, while the Nasdaq Composite index declined 0.2%.