A bit steeper slowing may be indicated for the ISM services index at the top of the hour based at least on PMI services which is revised 5 tenths lower from mid-month to an August final of only 50.5. This is the slowest rate of plus-50 expansion since January this year when this index was in contraction at 46.8. Econoday's consensus for ISM is 52.4 which would compare with 52.7 in July.

Respondents to the PMI sample are blaming rising interest rates and elevated rates of inflation for outright contraction in new orders during August, the first contraction in six months. Contraction here is tied to domestic business as export demand for services continued to increase (which is a theme of this morning's US trade data for July).

Other services details for the PMI report include slowing in output, slowing in employment, rising wages that are lifting input costs, and slowing pass through of higher costs to customers.

No change at the mid-month's 51.0, the slowest pace since February, is the call for the PMI service's August final.

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.