The ISM Services Business Activity index in the USA fell to 49.9, a notable decline from the previous reading of 55.0. This represents a decrease of 5.1 points, indicating a contraction in service sector activity.
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The actual figure of 49.9 came in below the analyst estimate of 51.8, suggesting weaker-than-expected performance in the services sector. This unexpected contraction is likely to weigh on market sentiment, particularly impacting stocks in the service industry. The market impact may be short-term, as investors reassess growth prospects and adjust expectations for future economic policy.