US services PMI returns to expansion territory

The seasonally adjusted final Markit US Services PMI came-in at 51.3 in March, slightly bettering the estimate of 51.2 and well above February figure of 49.7.

Key points

The average for the first quarter of 2016 (51.4) signaled the weakest expansion of business activity since Q3 2012

Service providers boosted their payroll numbers, which continued the upward trend seen in each month since March 2010

Input cost inflation remained subdued across the service sector in March

Average prices charged by service providers increased only marginally, reflecting strong competition for new work and slower cost inflation than in February