US Service Sector Growh Strong & Steady

Growth in Markit's US service sector sample is strong and steady, well over breakeven 50 at 58.9 in September vs 58.5 at mid-month and 59.5 in final August. Backlog is at a record high for this sample, which goes back five years, as new business rose at what the report calls a "sharp and accelerated pace." The report says employment continued to grow, though it isn't describing the rate of growth, and says input price pressures eased. The sample's outlook is very positive with about half expecting business activity to increase over the next year and only 5 percent seeing a reduction.

Recent History Of This Indicator:
The Markit PMI services flash index for August remained strong but moderated to 58.5 versus 61.0 in both the readings for final and mid-month July. Service businesses reported strength among both household and business clients as new business remained strong. Employment was up but only slightly though the general outlook is very strong.