Services PMI Rises Slightly

The nation's service sector is likely to be insulated to a large degree from the global turbulence hitting financial markets. The services PMI is showing no significant effect, rising 9 tenths from the flash reading to 56.1 which is above the Econoday high-end estimate and the best reading since May. For comparison, the final reading for July was 55.7.

New orders rose at what is described as a solid pace though the slowest in three months which could be a hint of trouble. Backlog orders are also down. But if there is trouble, it's not affecting hiring which the report continues to describe as robust and the strongest since May. Price readings, reflecting lower fuel costs, are moderating.

Recent History Of This Indicator:
The services PMI is expected to hold at the flash 55.2 for the final August reading. New orders have been strong in this report and hiring has been described as robust, a reminder that the domestic economy, apart from global troubles, remains solid.