Markit Economics' Service Sector PMI Shows Moderate Expansion

The bulk of the nation's economy expanded but only modestly in March based on Markit Economics' service-sector sample where the PMI came in at a plus-50 level of 51.3 which is up 3 tenths from the March flash and up 1.6 points from February. But the improvement does not include new orders where growth, in an ominous indication for overall activity in the coming months, is at its lowest point in the 6-1/2 year history of the report. Backlog orders are also down. The weakness in orders contributed to a fall in business confidence to another record low. A positive is employment growth, at least for now. Price data are subdued with inputs flat and selling prices up only marginally. The order readings in this report point to increasing slowing for the economy's main engine, services. Up ahead is the ISM non-manufacturing report.