PMI services picked up momentum at month-end, ending February at 52.3 for a full point gain from the mid-month flash but nevertheless down slightly from January's 52.5. The results may hint at a slightly better-than-expected result for ISM services index at the top of the hour where Econoday's consensus is calling for 53.0 which would compare with January's 53.4.

Despite the month-end gain, growth in new orders for PMI's sample slowed in February reflecting contraction in foreign orders. But a positive for the sample is the combination of cooling input costs together with a slight uptick in selling prices.

Employment also rose though respondents focused on part-time and temporary help. Backlogs fell in the month which isn't a plus for employment.

Together with the previously released 52.2 showing for PMI manufacturing, February's PMI composite rose 5 tenths in the month to 52.5 for the best, though still modest, showing since June last year.

No change at the mid-month's 51.3 is the consensus for the services PMI's February final. This index ended January at 52.5.

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.