The services PMI slowed at month-end to end March at 52.6, down from the mid-month flash of 53.8 but still the best showing since June last year. These results should confirm expectations for another very solid reading in the ISM services index at the top of the hour, an index that has well outstripped the services PMI since mid-year last year and where Econoday's consensus is calling for 7 tenths of slowing to what would still be a very respectable 54.4.

The services PMI report shows only slight expansion in new orders that, however, ends five months of decline. Costs continue to rise for the sample as does pass through to customers, which won't make pleasant reading at the Federal Reserve.

Other readings include slight acceleration in hiring reflecting in part the first rise in the sample's backlogs in six months. Together with Monday's 49.2 showing for the manufacturing PMI, March's composite PMI rose 2.2 points from February to 52.3, also the best reading since June.

US Services Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys collected from over 400 U.S. companies which provide a leading indication of what is happening in the private sector services economy. It is seasonally adjusted and is calculated from seven components, including New Business, Employment and Business Expectations.

Investors need to keep their fingers on the pulse of the economy because it indicates how various types of investments will perform. The Markit Services PMI provides advance insight into the services sector, which gives investors a better understanding of business conditions and valuable information about the economic backdrop of various markets. The stock market likes to see healthy economic growth which generally translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures. The PMI data are also used by many Central Banks to help make interest rate decisions.

The IHS Markit Services Flash data give a detailed look at the services sector, the pace of growth and the direction of this sector. Since the service sector accounts for more than three-quarters of U.S. GDP, this report has a significant influence on the markets. In addition, its sub-indexes provide a picture of new business, employment, business expectations and prices.