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US Services Sector Growth Tops Forecasts, But 'Tariff Concerns,' Price Pressures Cast A Shadow

The U.S. services sector experienced growth in May, surpassing expectations with the Institute for Supply Management's (ISM) services index reaching 53.8, up from 49.4 in April. This growth was driven by increases in business activity, new orders, and employment, although the pace of expansion slowed in some areas. Despite the positive figures, concerns loom over potential tariff increases and persistent price pressures. The report highlighted that while there was a slight decrease in the prices paid index, costs for inputs like fuel, labor, and transportation remain high, potentially fueling inflation. Additionally, the sector faces challenges from a tight labor market and the possibility of new tariffs, which could impact future growth and consumer spending.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/economy/us-services-sector-growth-tops-forecasts-but-tariff-concerns-price-pressures-cast-a-shadow/ar-AA1x7vOa ]