US: ISM Services PMI notches new record high of 64.1 in July vs. 60.4 expected

• US ISM Services PMI reached a new record high in July.
• US Dollar Index recovered above 92.00 after upbeat report.

The economic activity in the US service sector expanded at an unprecedented pace in July with the Institute for Supply Management (ISM) Services PMI rising to a new series-high of 64.1 from 60.1 in June. This reading came in better than the market expectation of 60.4.

Further details of the publication revealed that the Prices Paid Index edged higher to 82.3 from 79.5, the Employment Index improved 53.8 from 49.3. Finally, the New Orders Index rose to 63.7 from 62.1.

Commenting on the data, "the Employment Index reflected growth, even though the constrained labor pool continues to be an issue," said Anthony Nieves, Chair of the ISM Services Business Survey Committee. "Materials shortages, inflation and logistics continue to negatively impact the continuity of supply."

Market reaction

The US Dollar Index pared its losses after this data and was last seen trading flat on the day at 92.07.