Though slowing by 1.3 points to 52,7, the global services PMI posted its seventh straight plus-50 showing to indicate month-over-month expansion in general activity.

Yet new orders fell more sharply, down 2 full points to 51.9 though new export business edged only 1 tenth lower to 52.2. Total backlogs fell 1.1 points to a sub-50 reading of 49.6 to indicate a draw, while future activity slowed 3.5 points to a still healthy looking 62.2 that indicates far more of the sample sees general gains ahead than declines.

Employment slowed by 1.3 points to 51.3 while input costs eased 1.4 points to a still inflationary 58.7 and prices charged rose 2 tenths to a more inflationary 55.1.

By country, growth slowed in the US, China, the UK, Spain, and Russia while samples in Germany, France, and Italy all reported contraction. Japan and India, by contrast, reported faster growth.

Together with the global manufacturing PMI posted earlier in the week, at 48.7, the composite global PMI fell 1 point to 51.7, still above 50 but the lowest reading since January.

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.