Service industry prices climb amid war

The U.S. service economy experienced growth last month, but this expansion was accompanied by a significant rise in input prices and a decrease in employment levels. The Institute for Supply Management's Services PMI Index reported a price index of 70.7, the highest since October 2022, indicating inflationary pressures within the sector. This surge in costs, potentially exacerbated by geopolitical tensions like the ongoing conflict in Iran, suggests a challenging environment for businesses reliant on service provision and could impact consumer spending.