The US composite index is 54.3, slightly less than in June (54.8) and also less than the July flash estimate (55.0). This indicates that growth for the sample slowed in the latter half of July compared to the earlier part of the month.

The US services index for July is well above the 50 growth threshold, at 55.0, it is 0.3 points less than in June (55.3) and also 1 point less than the July flash estimate (56.0). This points to less strength than the earlier part of the month.

Expansion in the services sample can be attributed to an increase in new orders which rose on customer referrals. The amount of new business from abroad also increased. Companies also raised employment for the second month running.

Service providers noticed a sharp rise in input costs, with the rate of inflation quickening to a four-month high. Some companies raised their selling prices in response while others lowered their prices due to competitive pressures. The rate of output price inflation while high, eased to lowest since January.

Service providers remained optimistic that business activity will rise over the coming year, although confidence eased to an eight-month low. The US RPI and RPI-P both stand at minus 30 as economic activity is generally falling short of market forecasts.

No change at the mid-month's 56.0 is the consensus for the services PMI's July final. This index ended June at 55.1.

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.