U.S.: service prices rise at the fastest pace since 2022
WHAT HAPPENED
Services in the U.S. continued to grow in September, but their costs rose sharply: the price index reached 74%, its highest level since July 2022. Employment barely changed and new orders remained strong.
WHY IT MATTERS
Restaurants, hospitals, banks, workshops, and insurers are paying more for inputs, energy, transportation, and insurance. If the pressure continues, they may pass it on to the customer: consultations, haircuts, policies, and gyms could become more expensive in the coming months.
AND FOR YOUR PORTFOLIO
For a long-term investor, this shows an economy that is still selling, but with high internal costs. The pressure may reduce the profits of service companies or cause prices to rise, while consumers face more expensive services.
💬 TELL IT LIKE THIS
“The service economy continues to grow, but doing so is increasingly costly, and that bill often ends up being paid by the consumer.”