The US Institute for Supply Management’s services Prices Paid index eased to 73 in October from 74 previously. The move points to a modest deceleration in input cost pressures faced by service-sector firms, while the reading remains elevated in absolute terms.
Service-Sector Input Cost Pressures
A one-point fall keeps the index firmly in expansionary territory and suggests pricing momentum has cooled slightly rather than reversed.
Market Implications and Federal Reserve Response
Markets typically watch this gauge for clues on near-term inflation trends and the potential reaction function of the Federal Reserve.
