- US Markit Services PMI rose to fresh multi-year tops in March.
- US Dollar Index continues to edge lower after the data.
The economic activity in the US service sector expanded at its stronger pace since July 2014 with the IHS Markit’s Services PMI rising to 60.4 (final) in March from 59.8. This reading came in better than the market expectation and the flash estimate of 60.
Furthermore, the Composite PMI improved to 59.7 in March, compared to analysts’ estimate of 59.1.
Commenting on the data, “the recent surge in service sector growth shows no sign of abating with another impressive performance in March rounding off a quarter in which the PMI surveys indicate that the economy grew at an annualized rate of approximately 5%,” said Chris Williamson, Chief Business Economist at IHS Markit.
“The biggest concern is inflation with price gauges hitting new survey highs in March as demand often exceeded supply for a wide variety of goods and services,” Williamson further noted.
Market reaction
The greenback continues to weaken against its rivals after this data. As of writing, the US Dollar Index was down 0.33% on a daily basis at 92.70.
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