US Services Sector Slowdown Deepens, Input Prices Hit Four-Year High
What happened
The Institute for Supply Management survey showed the US services sector slowdown deepened in September. Strong domestic demand put pressure on supply chains, pushing input prices paid by businesses to a four-year high. Complaints about higher fuel prices dominated responses, making energy costs central to inflation concerns in the sector.
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Why it matters
The ISM findings provide critical input regarding economic activity that guides the FED's economic outlook and monetary policy decisions. The report suggests that inflation could remain elevated into 2027, driven by rising energy and input costs.
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Who's involved
- ReutersReports and disseminates the findings published by the Institute for Supply Management.
- Institute for Supply ManagementConducts the survey that indicates the services sector slowdown and rising input prices.
- FEDUses the ISM data to guide its economic outlook and monetary policy decisions.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- FEDSpeculative
The FED might adjust interest rates for borrowers based on the elevated inflation concerns and sector slowdown.
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The entities involved
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Reuters
international news agency
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Institute for Supply Management
ISM is the first and largest nonprofit professional supply management organization worldwide.
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