Markit August final US services PMI 50.7 vs 50.9 expected

Service sector and composite data from Markit

• Initial reading was 50.9
• Final July reading was 53.0
• Composite PMI 50.7 vs 50.9 prelim
• Final July composite PMI was 52.6
• Services new business 51.3 vs 54.1 prior

This is a small dip but the 'new business' slide is worrysome, it's the lowest since March 2016. It's mostly been manufacturing where the US stumbles have been evident but this shows they might be starting to spill over. Markit says that at these levels, it pegs US GDP growth at about 1%.

"At current levels, the August PMIs are indicating annualized GDP growth of 1.0%, putting the economy on course for growth of just below 1.5% in the third quarter. Such weak readings hint at downside risks to current third quarter growth projections, which generally point to an expansion of just over 2%," said Chris Williamson, Chief Business Economist at IHS Markit.

The ISM non-manufacturing report is due up next.