US Services Sector Growth Slows Down
According to Institute for Supply Management data, growth in the US services sector is slowing while businesses face rising costs and supply chain issues.
The Institute for Supply Management services index in the US fell by 0.5 points last month to 54.9, as companies continue to grapple with rising costs and supply chain disruptions.
Decline in the Services Index
According to the latest data released, the Institute for Supply Management's services index dropped by 0.5 points last month to 54.9.
Resilient consumer spending and strong business investments continue to support demand.
Costs and Price Increases
While companies are forced to contend with rising cost pressures, the ISM index measuring prices paid for materials and services rose to 74.
This rate was recorded as the highest level seen since July 2022.
Supply Chain and Delivery Times
Supply chains have been negatively impacted by tariffs and conflicts in the Middle East, with supplier delivery times reaching their highest level since June.
New Orders and Employment
Although new orders, an indicator of demand, fell by 1.1 points to 59.8, they retained their status as one of the highest levels in recent years.
As services sector businesses try to strike a balance between demand and costs, the employment indicator rose to 50.1.