US: ISM Services PMI declines to 51.2 in March vs. 54.5 expected

• Service sector growth in the US lost momentum in March.
•  US Dollar Index stays in daily range near 101.50.

Economic activity in the US services sector expanded at a softening pace in March with the ISM Services PMI declining to 51.2 from 55.1 in February. This reading came in weaker than the market expectation of 54.5.

The inflation component of the PMI survey, the Price Paid sub-index, edged lower to 69.5 from 65.6 in February, the New Orders sub-index declined sharply to 52.2 from 60.4 and the Employment sub-index fell to 51.3 from 54.

Commenting on the data, “there has been a pullback in the rate of growth for the services sector, attributed mainly to (1) a cooling off in the new orders growth rate, (2) an employment environment that varies by industry and (3) continued improvements in capacity and logistics, a positive impact on supplier performance," said Anthony Nieves, Chair of the ISM Services Business Survey Committee.

Market reaction

The US Dollar Index stays in its daily range at around 101.50 after this report.