Investing.com - Service sector activity in the U.S. grew at a much slower rate than expected in September, falling to a three-month low, industry data showed on Thursday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 54.4 in September from a reading of 58.6 in August.
Analysts had expected the index to decline to 57.4 last month.
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 0.9 point to 59.6 and the Employment Index decreased 4.3 points to 52.7, indicating growth in employment for the 14th consecutive month.
Following the release of the data, the U.S. dollar added to losses against the euro, with EUR/USD rising 0.27% to trade at 1.3615.
Meanwhile, U.S. stock markets extended losses. The Dow Jones Industrial Average fell 0.65%, the S&P 500 index declined 0.7%, while the Nasdaq Composite index dipped 0.55%.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 54.4 in September from a reading of 58.6 in August.
Analysts had expected the index to decline to 57.4 last month.
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 0.9 point to 59.6 and the Employment Index decreased 4.3 points to 52.7, indicating growth in employment for the 14th consecutive month.
Following the release of the data, the U.S. dollar added to losses against the euro, with EUR/USD rising 0.27% to trade at 1.3615.
Meanwhile, U.S. stock markets extended losses. The Dow Jones Industrial Average fell 0.65%, the S&P 500 index declined 0.7%, while the Nasdaq Composite index dipped 0.55%.