Investing.com - Service sector activity in the U.S. grew at a faster pace than expected in March, one month after falling to the lowest level in almost two years, industry data showed on Tuesday.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index improved to 54.5 last month from 53.4 in February, which was the lowest level in almost two years. Analysts had expected the index to rise to 54.0.
The Non-Manufacturing Business Activity Index increased to 59.8, 2.0 points higher than the February reading of 57.8. The New Orders Index registered 56.7, 1.2 points higher than the reading of 55.5 in February.
The Employment Index increased 0.6 points to 50.3 from the February reading of 49.7 and indicates growth after a month of contraction.
The Prices Index increased 3.6 points from the February reading of 45.5 to 49.1, indicating prices decreased in March for the fifth time in the last seven months.
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 majority of respondents’ comments indicate that business conditions are mostly positive and that the economy is stable and will continue on a course of slow, steady growth.
EUR/USD was trading at 1.1348 from around 1.1357 ahead of the release of the data, GBP/USD was at 1.4145 from 1.4160 earlier, while USD/JPY was at 110.61 from 110.53 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 94.92, compared to 94.83 ahead of the report.
Meanwhile, U.S. stock markets were lower after the open. The Dow 30 shed 0.3%, the S&P 500 declined 0.65%, while the Nasdaq Composite slumped 0.6%.
Elsewhere, in the commodities market, gold futures traded at $1,231.20 a troy ounce, compared to $1,233.80 ahead of the data, while crude oil traded at $35.58 a barrel from $35.52 earlier.