Markit Services PMI retreats to 54.4 in September vs. 59.5 expected

  • Markit Services PMI came in lower than market expectation in September.
  • US Dollar Index test 93.00 after the data.

The business activity in the US service sector continued to lose momentum in September with IHS Markit’s flash Services PMI falling to 54.4 from 55.1 in August. This print missed analysts’ estimate of 59.5.

Furthermore, the Composite PMI edged lower to 54.5 from 55.4 in the same period, compared to the market consensus of 58.3.

Commenting on the data, “the pace of US economic growth cooled further in September, having soared in the second quarter, reflecting a combination of peaking demand, supply chain delays and labour shortages,” said Chris Williamson, Chief Business Economist at IHS Markit. “The slowdown was led by a cooling of demand in the service sector, linked in part to the Delta variant spread.”

Market reaction

The US Dollar Index extended its daily slide after this report and was last seen losing 0.45% on the day at 93.02.