Investing.com - Service sector activity in the U.S. grew at a significantly faster rate than expected in July, hitting a five-month high, industry data showed on Monday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 56.0 in July from a reading of 52.2 in June.
Analysts had expected the index to inch up to 53.0 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 increased significantly by 6.9 points to 57.7, and the Employment Index decreased 1.5 points to 53.2, indicating growth in employment for the 12th consecutive month.
Following the release of the data, the U.S. dollar added to gains against the euro, with EUR/USD shedding 0.31% to trade at 1.3239.
Meanwhile, U.S. stock markets remained lower. The Dow Jones Industrial Average fell 0.3%, the S&P 500 index declined 0.2%, while the Nasdaq Composite index dipped 0.1%.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 56.0 in July from a reading of 52.2 in June.
Analysts had expected the index to inch up to 53.0 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 increased significantly by 6.9 points to 57.7, and the Employment Index decreased 1.5 points to 53.2, indicating growth in employment for the 12th consecutive month.
Following the release of the data, the U.S. dollar added to gains against the euro, with EUR/USD shedding 0.31% to trade at 1.3239.
Meanwhile, U.S. stock markets remained lower. The Dow Jones Industrial Average fell 0.3%, the S&P 500 index declined 0.2%, while the Nasdaq Composite index dipped 0.1%.