Markit Economics Service Sector Demand "Robust"

"Robust" -- both domestic and foreign -- is Markit Economics' description of US service sector demand in July which, however, is not confirmed by the no more than moderate-to-solid diffusion score of 53.0. Still, the services index easily beat Econoday's consensus range and is up 1.5 points from June. And total new orders for the sample are rising at their best rate since early in the year.

Yet that appears to be about the best news in the report as hiring was "only moderate" in July, inflationary pressures "historically subdued", and with optimism in the outlook slipping for a sixth month in a row and once again at a record low for the series. Together with a very subdued 50.4 score for manufacturing released last week, July's composite came in at 52.6.