US ISM Services PMI drops to 50.8 in March

• ISM Services PMI dropped to 50.8 in March.
• US Dollar stays under heavy selling pressure in multi-month lows.

Economic activity in the US service sector eased momentum in March, with the ISM Services PMI receding to 50.8 from 53.5 in February, missing analysts’ estimates of 53.0.

Further details from the survey revealed that the Prices Paid Index—a key gauge of inflation—eased to 60.9 from 62.6, while the Employment Index retreated to 46.2 from 53.9, underscoring a downtick in labour market conditions within the service industry.

Market reaction

The US Dollar navigates under heightened downside pressure in the wake of the release, with the US Dollar Index (DXY) receding to levels last traded in early October 2024.