Investing.com - Service sector activity in the U.S. fell more than expected in January, but still registered an 84th consecutive month of growth, underlining optimism over the U.S. economy, industry data showed on Friday.
In a report, the Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) dropped to 56.5 in January from the prior month’s reading of 57.2
Analysts had expected the index to slip to to 57.0.
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 Non-Manufacturing Business Activity Index increased to 60.3, 0.6 points higher than December’s reading of 60.9. Analysts had forecast it to rise to 61.2.
The New Orders Index registered 58.6 in January, 2.1 points lower than the reading of 60.7 in the previous month.
The Employment Index increased 2.0 points to 54.7 from December’s reading of 52.7.
The Prices Index increased 2.9 points to 59.0 in January from the prior month’s reading of 56.1.
The ISM indicated though the non-manufacturing sector began 2017 with a cooling-off, it still reflected strong growth.
“Respondents' comments are mixed indicating both optimism and a degree of uncertainty in the business outlook as a result of the change in government administration,” the ISM explained.
Immediately following the report, which was released simultaneously with December factory orders, EUR/USD traded at 1.0763 compared to 1.0765 ahead of the release, GBP/USD was at 1.2462 from 1.2481 earlier, while USD/JPY was at 112.69 from 112.68 prior to the publication.
The US dollar index, which tracks the greenback against a basket of six major rivals, traded at 99.82 compared to 99.83 prior to the release.
Meanwhile, U.S. stock markets were trading higher after the open. The Dow 30 advanced 0.69%, the S&P 500 gained 0.47%, while the Nasdaq Composite traded up 0.26%.
Elsewhere, in the commodities market, gold futures traded at $1,218.00 a troy ounce, compared to $1,217.85 ahead of the data, while crude oil traded at $53.87 a barrel from $53.59 earlier.