Growth in global services activity slowed in the month of June to a diffusion index of 54.0, still respectable, versus 55.5 in May.

S&P's global samples reported monthly slowing in new orders to 54.0, down 1.4 points, but a more tangible 1.3-point slowing in new export orders to 52.4. Yet expectations of future activity accelerated by nearly a full point to a strongly optimistic 65.7.

Price data were mixed with input prices rising at an increasing pace, up 7 tenths to 60.1, but selling prices rising at a slowing pace, down 1.2 points to 54.9.

The global composite index, which includes previously reported sub-50 contraction in manufacturing at 48.8, fell 1.7 points to 52.7 for its slowest rate of growth since early in the year.

Russian respondents reported strong rates of composite growth in the month; for services Italy and France were the weakest with the US and UK both doing better than the average.

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.