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US services sector cools in September, price pressures building · GNN Daily Breaking News

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  Speaker 1: The growth momentum across the vast United States services sector
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  Speaker 1: registered a slight deceleration in September as inflationary input costs
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  Speaker 1: gained renewed traction. According to the latest survey data from
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  Speaker 1: the Institute for Supply Management, the non-manufacturing purchasing managers index
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  Speaker 1: slipped to 54.9% from 55.4% in August. While any reading
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  Speaker 1: above the 50% threshold signals ongoing economic expansion, marking 27
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  Speaker 1: consecutive months of overall growth, the minor drop reflected softer
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  Speaker 1: business activity and a slight moderation in new orders. Despite
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  Speaker 1: the headline dip, robust underlying consumer demand and persistent investment
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  Speaker 1: in digital infrastructure continued to keep the broader domestic service
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  Speaker 1: economy in solid standing. The most prominent feature of the
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  Speaker 1: September report was a sharp acceleration in cost pressures facing
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  Speaker 1: non-manufacturing firms. The ISEM prices paid index jumped to 74%,
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  Speaker 1: fueled by elevated energy costs, ongoing maritime shipping disruptions, and
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  Speaker 1: tariff burdens affecting key raw materials and overseas supply chains.
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  Speaker 1: Supplier delivery times lengthened for the 22nd consecutive month, highlighting
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  Speaker 1: persistent operational bottlenecks as demand outpaces capacity. Combined with recent
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  Speaker 1: manufacturing surveys showing parallel cost increases, the data points to
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  Speaker 1: resurfacing input price pressure across major sectors of the economy.
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  Speaker 1: Contrasting the inflation signals, employment within the service sector rebounded
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  Speaker 1: back into expansion territory, with the employment index climbing to 50.1%
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  Speaker 1: after contracting the prior month. The stabilization in service hiring
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  Speaker 1: suggests underlying resilience in the broader labor market despite elevated
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  Speaker 1: borrowing costs. However, the combination of stubborn service sector inflation
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  Speaker 1: and persistent employment stability complicates monetary policy expectations. As central
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  Speaker 1: bank officials evaluate upcoming interest rate decisions, the simultaneous cooling
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  Speaker 1: of overall service output alongside accelerating input prices presents a
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  Speaker 1: delicate balancing act for policymakers navigating domestic inflation targets.