Investing.com - Service sector activity in the U.S. grew at a faster pace than expected in April, just two months after falling to the lowest level in almost two years, industry data showed on Wednesday.
In a report, the Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) improved to 55.7 last month from 54.5 in March. Analysts had expected the index to rise to 54.7.
April's reading was the highest level since December and came after February’s figure had hit a 23-month low at 53.4.
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 decreased to 58.8, 1.0 points lower than the March reading of 59.8. Analysts had expected this indicator to drop to only 59.2.
The New Orders Index registered 59.9, 3.2 points higher than the reading of 56.7 in March.
The Employment Index increased 2.7 points to 53.0 from the March reading of 50.3.
The Prices Index increased 3.6 points from the March reading of 49.1 to 53.4, indicating prices increased in April for the first time in the last five months.
Immediately after the publication, which was reduced simultaneously with March factory orders, EUR/USD was trading at 1.1478 from around 1.1507 ahead of the release of the data, GBP/USD was at 1.4480 from 1.4501 earlier, while USD/JPY was at 106.98 from 106.66 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 93.28, compared to 93.08 ahead of the report.
Meanwhile, U.S. stock markets were lower after the open. The Dow 30 shed 0.26%, the S&P 500 declined 0.35%, while the Nasdaq Composite lost 0.30%.
Elsewhere, in the commodities market, gold futures traded at $1,283.60 a troy ounce, compared to $1,287.85 ahead of the data, while crude oil traded at $44.70 a barrel from $44.76 earlier.