US: Markit Services PMI edges lower to 54.9 (final) in September vs. 54.4 expected

• Markit Services PMI weakened modestly to 54.9 in September.
• US Dollar Index stays in the positive territory near 94.00.

The business activity in the US service sector continued to expand in September albeit at a softer pace than it did in August with IHS Markit's Services PMI retreating to 54.9 (final) from 55.1 in August. Nevertheless, this reading came in higher than the advanced estimate and the market expectation of 54.4. 

Further details of the publication revealed that the Composite PMI declined to 55 in September from 55.4 in August.

Commenting on the data, "the service sector showed further signs of struggling amid the COVID-19 Delta wave in September," said Chris Williamson, Chief Business Economist at IHS Markit. "While business activity is growing at a rate in line with the long-run average seen prior to the pandemic, this represents a marked downshifting from the spring and summer months."

Market reaction 

The US Dollar Index inched slightly higher after this report and was last seen rising 0.2% on the day at 93.98.