What's going on?

Wednesday saw the world�s services industries (think: whatever happens outside factories) provide updates on their March activity. They made for gloomy reading in parts of Europe, but were more upbeat in the US and China�

What does this mean?

Surveys of the sector�s activity levels are particularly closely watched in the UK, where services are responsible for 80% of the economy (and 91.5% of London jobs). There, activity declined last month for the first time in nearly three years: as with the country�s construction sector, customers delayed spending amid ongoing political uncertainty. And in France, where services are equally as important, continued protest-related disruption led to renewed shrinkage in March.

China, by contrast, had a happier time: government support kicked in last month, helping its services sector expand by the most in over a year. And data also showed the US services industry growing more than forecast, albeit at a slower pace than in February.

Why should I care?

For markets: China�s recovery appears underway.

Where services data goes, economic growth tends to follow � especially in �developed� economies like the US and UK. China is trying to shift its own �emerging� economy�s reliance on manufacturing towards a greater contribution from services � currently only 40%. While the country�s government is spending big on plugging the gap between the old-school Chinese economy and its sleek, modern future, a services resurgence bodes well � perhaps encouraging investors to buy Chinese stocks on Wednesday, as well as those of global trading partners which may stand to benefit.

The bigger picture: Retail�s tail is wagging.

Retail sales are another telling indicator of an economy�s health. Data released on Wednesday showed that eurozone sales in February exceeded economists� predictions � with even Germany, the region�s recent laggard, posting a strong month. US retail sales released earlier this week surprisingly fell in February � although January�s data was simultaneously revised higher, suggesting the country�s economy is still stable.