US March S&P Global final services PMI 51.7 vs 51.7 prelim

• Prelim 51.7
• Prior 52.3
• Composite 52.1 vs 52.2 prelim

The ISM services report is due at the top of the hour.

Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence, said:

“The US service sector reported a further rise in business
activity in March, adding to signs that the economy
enjoyed robust growth in the first quarter. Combined
with an acceleration of growth in the manufacturing
sector, the latest services PMI data point to GDP having
risen at an approximate 2% annualized rate in the first
three months of the year.

“Confidence in the outlook for the coming year has also
lifted higher, which should help to sustain solid growth
into the second quarter.

“The sustained upturn is being accompanied by renewed
upward price pressures, however, with wage growth
in particular driving costs higher. Rising raw material
and fuel prices are also adding to cost burdens, which
is in turn driving average selling prices for goods and
services higher at a rate not seen since July of last year.
Both manufacturers and services providers alike are
seeing intensifying cost and selling price inflation rates,
which is likely to feed through to higher consumer price
inflation in the near term.”

The preliminary release also highlighted improving confidence and higher price pressures.

This article was written by Adam Button at www.forexlive.com.