The services PMI fell from 55.7 to 55.4, largely in line with the analyst consensus of 55.3. The composite PMI fell from 54.6 to 54.4, compared to analyst forecasts of 54.3.
The report showed that the services sector continued to grow at a strong pace, while the manufacturing sector remained under pressure. The strong performance of the services sector provided material support to Composite PMI, which exceeded analyst expectations.
S&P Global noted: “Early survey indicators for September point to an economy continuing to grow at a solid pace, albeit with a weakened manufacturing sector and rising political uncertainty as significant headwinds.”
The US Dollar Index rose higher as traders reacted to the better-than-expected Composite PMI report. Currently, the US Dollar Index is trying to settle above the 100.90 level.
Gold tested all-time highs above the $2630 level as the rally continued. Gold traders remain bullish and ignore the recovery of the US dollar.
SP500 remained stuck around the 5725 level after the release of PMI reports. It remains to be seen whether solid PMI data during today’s trading session will provide material support to the SP500.