Investing.com – Service sector activity in the U.S. rose less-than-expected in December, industry data showed on Thursday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index rose by 0.6 points to 52.6 in December from a reading of 52.0 in November.
Analysts had expected the index to rise by 1.0 point to 53.0 in December.
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 0.2 points to 53.2, while the Employment Index increased 0.5 points to 49.4, indicating contraction in employment for the third time in the last four months.
The Prices Index decreased 1.3 points to 61.2, indicating prices increased at a slower rate in December when compared to November.
Following the release of the data, the U.S. dollar held on to strong gains against the euro, with EUR/USD tumbling 1.15% to trade at 1.2792, the lowest level since September 2010.
Meanwhile, U.S. stock markets were broadly lower after the open. The Dow Jones Industrial Average fell 0.9%, the S&P 500 index dropped 0.85%, while the Nasdaq Composite index shed 0.3%.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index rose by 0.6 points to 52.6 in December from a reading of 52.0 in November.
Analysts had expected the index to rise by 1.0 point to 53.0 in December.
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 0.2 points to 53.2, while the Employment Index increased 0.5 points to 49.4, indicating contraction in employment for the third time in the last four months.
The Prices Index decreased 1.3 points to 61.2, indicating prices increased at a slower rate in December when compared to November.
Following the release of the data, the U.S. dollar held on to strong gains against the euro, with EUR/USD tumbling 1.15% to trade at 1.2792, the lowest level since September 2010.
Meanwhile, U.S. stock markets were broadly lower after the open. The Dow Jones Industrial Average fell 0.9%, the S&P 500 index dropped 0.85%, while the Nasdaq Composite index shed 0.3%.