PMI services ended March at 51.7, unchanged from the mid-month flash for the third straight plus-50 showing in a row. The results won't affect expectations for the ISM services index at the top of the hour which has been running a point or so above the PMI and is expected to inch a tenth higher to 52.7.

Growth in new orders slowed for PMI's March sample as did output. But optimism improved and the sample expanded hiring. Of note is what the report describes as"sharp" increases in both input costs and selling prices, not unexpected given three months of growth in composite activity though the description perhaps is surprising (watch for the ISM's services prices paid index for confirmation). Note that price pressures reported by service providers would increase concern over price pressures for consumer service costs.

No change at the mid-month's 51.7 is the consensus for the services PMI's March final. This index ended February at 52.3.

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.