US service-sector activity likely gathered steam in July

In contrast to the manufacturing sector, where economists have a considerable array of regional canvasses with which to construct a national forecast, only two district Federal Reserve Bank canvasses and the Markit Economics' survey are available for producing a monthly service-sector activity estimate. 

"Across-the-board improvements in the above reports suggest that the ISM non-manufacturing gauge probably rebounded to a three-month high of 57.5 in July", says Societe Generale. 

Consistent with our call for an acceleration in private service-sector hiring during the reference period, the employments readings improved in each of the above reports. The ISM non-manufacturing employment diffusion index is expected to climb to 56.0 in July from the five-month low of 52.7 posted in June.