Global services accelerated noticeably in March, at 54.4 versus an upward revised 52.6 in February. The composite PMI, pulled down by Monday's 49.6 for manufacturing, came in at 53.4, up 2.3 points on the month.

The report cites broad strength in global services. New business is up nearly 2 points to 53.8 while job growth, at 52.4, is at an eight-month high. Expectations for future activity are very strong at 64.7 which, however, is down nearly a point from February. Inflation data show slowing in costs but an increase in selling prices.

India is at the top of the global composite. Spain, Russia, China, Italy and the Euro area as a whole are also cited for strength.

JP Morgan Global Services PMI gives an overview of the global services sector. It is based on monthly surveys of over 5,500 executives from 15 of the world’s strongest economies, including the U.S., Japan, Germany, France and China which together account for nearly 80 percent of global services sector’s gross value added (GWA). It reflects changes in global output, employment, new business, backlogs and prices. The Global Services PMI is seasonally adjusted at the national level to control for varying seasonal patterns in each country and is produced by J.P. Morgan and Markit in association with ISM and the International Federation of Purchasing and supply Management (IFPSM).

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. The J.P. Morgan Global Services PMI provides advance insight into the global services sector, which gives investors a better understanding of business conditions and valuable information about the economic backdrop of global markets. The stock market likes to see healthy economic growth because that 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 JP Morgan Global Services PMI data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the services sector accounts for the lion’s share of GDP of many advanced economies, this report has a big influence on the markets. In addition, its sub-indexes provide a picture of global output, employment, new business, backlogs and prices.