Service Sector Sample Continues Very Flat

Markit's service sector sample continues to report very flat rates of growth, at a composite index of 50.9 for the August flash which is 5 tenths lower than final July and unchanged from the July flash. Both this flash and the July flash are the lowest readings since February.

The sample reports slowing growth this month in new orders and employment as well as business activity, all the result of generally subdued demand. And the report is once again citing uncertainty ahead of the presidential election as a factor that is dampening growth. A positive is a second month of improvement in optimism which hit a survey low in June.

The economy's disappointing strength during the first half of the year is largely consistent with the results in this report. And this report is not pointing, at least yet, to the big third-quarter rebound that is widely expected.