Service Sector Growth Flat

Growth in the service sector is flat based on Markit's monthly sample. The composite index for the September flash is up 1.0 point to 51.9 but isn't supported by either new orders or backlogs where growth for both are at multi-month lows. Employment is also slowing this month and prices are showing little pressure. No wonder 12-month confidence is back at survey lows. Still, the headline gain for this report will likely boost estimates for next week's ISM non-manufacturing report which slowed very sharply in August.