The Institute for Supply Management’s services prices index rose to 74.0 in September from 72.6 in August, its highest reading since July 2022, according to its monthly report. The index has been above 70 in six of the past seven months.
Higher prices were reported by 50.3% of respondents, up from 44.8% in August, while 2.2% reported lower prices. Seventeen industries reported paying more, including transportation and warehousing. No industry reported paying less.
Steve Miller, who chairs ISM’s services survey committee, said tariffs and fuel costs were the issues respondents cited most often in their supply chains. He said “fuel costs were mentioned twice as often as any other single issue impacting performance.”
Fuel and gasoline prices rose for an eighth straight month and diesel for a seventh. Copper prices rose for a 10th month, while memory products and software licensing increased for a ninth and eighth month, respectively. Construction contractors, labor, steel and switchgear were also listed as rising in price.
Supplier deliveries slowed for a 22nd straight month, with the index rising to 53.2 from 51.3. New export orders fell to 46.9 from 56.3, while imports eased to 52.9 from 56.3. The headline services PMI fell to 54.9 from 55.4 but remained in expansion for a 27th straight month.
ISM’s manufacturing prices index rose more sharply, climbing to 77.9 in September from 71.1 in August.
