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  • Markit PMI report shows US service sector lost momentum in August.
  • Uninspiring data forces US Dollar Index to continue to push lower.

The data published by the IHS Markit today showed that the economic activity in the service sector in the US expanded at a softer pace than expected in August with the Services PMI edging lower to 50.7 from 57 in July and missing the market expectation of 50.9.

With the initial market reaction, the US Dollar Index extended its daily slide and was last down 0.27% on the day at 98.13.

“The Composite PMI Output Index registered 50.7 in August, down from 52.6 in July, and signalling the slowest increase in output since the current sequence of expansion began in March 2016,” the IHS Markit said in its publication.

Commenting on the data, “US businesses reported one of the toughest months since the global financial crisis in August, with growth of output, order books and hiring all slowing amid steep falls in both export and business confidence,” noted  Chris Williamson, Chief Business Economist at IHS Markit.