US: Markit Services PMI declines to 55.2 in August vs. 59.4 expected

• US Markit Services PMI edged lower in August.
• US Dollar Index stays deep in the negative territory.

The business activity in the US service sector expanded at a softening pace in August with IHS Markit's flash Services PMI falling to 55.2 from 59.9 in July. This print fell short of the market expectation of 59.4.

Further details of the publication revealed that the Composite PMI dropped to its lowest level since December 2020 at 55.4, compared to analysts' estimate of 58.3.

Market reaction

The market mood remains upbeat despite these disappointing data. As of writing, the S&P 500 Index was up 0.5% on the day and the Nasdaq Composite was rising 0.7%.