Markit's U.S. service sample is reporting increasingly solid conditions, at a composite of 54.7 in July vs the mid-month flash of 54.2 and 53.0 in June. The best news in the report comes from new orders, rising at a 2-year high, and employment which is at its best pace so far this year. Especially helping employment is a build underway in backlog orders. Optimism on the outlook is another a positive in this report, one that hints at a healthy second-half for the economy. Indications on inflation, which have been lagging, are mixed with costs up but selling prices still soft. Coming up next is ISM non-manufacturing, a report that includes mining and construction and which has been running stronger than PMI services.