Markit's flash US services PMI misses views in July

Markit’s flash US business services purchasing managers' index declined to 50.9 in July from 51.4 the month before.

This marked a five-month low and fell short of economists’ expectations for a reading of 52.0.

Adjusted for seasonal influences, the flash Markit US Composite PMI Output Index came in at 51.5, up from 51.2 in June and signalling a second successive acceleration in the rate of output growth. Still, the rate of expansion was modest.

Andrew Harker, senior economist at Markit, said: “The US service sector remained stuck in a low gear at the start of the third quarter of 2016, with growth of activity remaining subdued amid a slower rise in new business. This is particularly disappointing given the decent numbers posted by the manufacturing sector last week.

“A bit more encouraging was the rebound in business confidence following June’s survey low, suggesting that a return to stronger growth will be possible once the current soft patch comes to an end. Whether this will be before the presidential election or not remains to be seen, however.”