US Services Sector Activity Slows in September, Prices Paid Climb
Activity in the US services sector decelerated in September. Strong domestic demand contributed to stretching supply chains, and a key measure of prices paid by businesses for inputs reached its highest level in over four years. This suggests that inflationary pressures may persist into 2027.
US services sector activity slowed in September, while robust domestic demand strained supply chains and lifted a measure of prices paid by businesses for inputs to its highest level in more than four years, pointing to inflation that could stay elevated into 2027. The report showed activity easing in the month as price pressures persisted, with the input-cost gauge reaching its highest level in more than four years.