- U.S. Services Sector Expands Faster in June
The U.S. non-manufacturing sector expanded faster than expected in the month of June, according to the Institute for Supply Management report released on Thursday.
The non-manufacturing sector Purchasing Managers Index (PMI) rose from 56.9 in May to 57.4 in June, indicating solid growth in the second quarter.
While orders surged to 60.5 from 57.7, the employment gauge stood at 55.6 from a two-year high of 57.8. Partly due to the fact that the labor market is nearing full employment as shown by May job data.
The reading exceeds the average gauge for 2016 and 2017, and consistent with expected second quarter pick up, following a weak first quarter data.
However, steady job market, low borrowing costs and good consumer finances are driving the services sector.
Also, the report showed export orders were up, rose to 55 from 54.5. While, business activity increased to 60.8 from 60.7. Further, signalling consistent growth ahead of the Fed’s balance normalization and rates hike.
The U.S. dollar dipped further against the Euro single currency on Thursday, losing more than half of its gains this week. The uncertainty surrounding the North Korea and the U.S. continued to weigh on U.S.’s markets attractiveness.