US ISM Services PMI rises to 54.1 in December vs. 53.3 expected

• US ISM Services PMI in the US rose more than expected in December.
• US Dollar Index turns positive on the day near 108.50.

The economic activity in the US service sector expanded at an accelerating pace in December, with the ISM Services PMI rising to 54.1 from 52.1 in November. This reading came in above the market expectation of 53.3.

Other details of the report showed that the Prices Paid Index, the inflation component, rose to 64.4 from 58.2, while the Employment Index edged lower to 51.4 from 51.5.

Market reaction

The US Dollar gathered strength against its major rivals with the immediate reaction. At the time of press, the USD Index was up 0.2% on the day at 108.52.