Markit Economics Services Flash Report Shows Modest Strength

There's not very many early indications on the service sector and the sample from Markit Economics is reporting only the most modest strength, at an index of 51.0 for the March flash. The index is up from sub-50 readings during February but the trend remains very soft with new orders at their weakest pace in data going back to 2009 and backlogs at an 8-month low. Still, the sample is hiring with employment, at least for now, above average. On prices, low fuel costs are offsetting wage increases with selling prices flat. Early estimates for first-quarter GDP are roughly in the 2 percent area with this report, however, pointing to something below that.