Global services, at 50.8 in Spetember, are stagnant just above the breakeven 50 line at the same time that global manufacturing, in data updated on Monday, is stagnant just below this line, making for a global composite of 50.5. This is down a tenth from August and the weakest showing since January this year.

Conditions for services won't be improving anytime soon given a 1.2 point decline for September's new orders to 49.6. And backlogs are even worse, down a full point to 47.4. Nevertheless global service providers continue to hire, at 51.4, in expectations for improvement ahead though the future activity index did slow by 1.7 points to a still optimistic 61.8.

Price indications for services are elevated but slowing slightly, at 59.3 for input prices (down 4 tenths from August) and at 54.3 for selling prices (down 2 tenths). Country breakdowns for services were not given in today's report.

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.