The global services PMI edged higher in April to 52.7 to indicate the best growth since July last year but not by much. This index continues to hold in the low 50s range in contrast to mid-50 levels this time last year.

But the news is positive with new orders just above 52 and export orders just above 51. Expectations for future activity are just above 63 which for this reading, which historically is high relative to current conditions, is moderately strong. Employment flattened a couple points to just below 50.

Moderation in costs and selling prices is perhaps the most welcome news of all suggesting that current rates of overall activity, though only modestly favorable, are at least sustainable and are not a threat to global policy makers.

Regional details are limited in the services report but it's safe to say that India's out in front. These results together with last week's April manufacturing PMI of 50.3 leave the global composite at 52.4 for its best score since June last year.

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.