The latest report by IHS Markit revealed on Wednesday the seasonally adjusted final IHS Markit U.S. Services Business Activity Index stood at 55.3 in March, down slightly from 56.0 in February (PMI) slightly from 56.0 in February, but up from a flash figure of 54.8. 

The reading signaled a further strong expansion in business activity across the U.S service sector, albeit at a slower pace than in February. Nevertheless, the rate of expansion was broadly in line with the series average and rounded off a strong start to 2019.

Economists had forecast the index to be unrevised at 54.8.

According to the report, the expansion was supported by a solid increase in new orders and a further upturn in new business from abroad. On the prices front, the rate of increase in charges was the slowest since October 2017 and input cost inflation posted below the series trend. Business confidence fell to the lowest level since December 2017.