**US Business Costs Rise as Services Growth Slows**
America’s services sector continued growing in September, but at a slower pace, according to a report released October 5. The Institute for Supply Management’s Services PMI fell to 54.9 from 55.4 in August. A reading above 50 indicates expansion, so the decline signals slower growth rather than a contraction. September marked the sector’s 27th consecutive month of expansion.
Businesses also reported stronger cost pressures. The survey’s prices index rose to 74.0 from 72.6, reaching its highest level since July 2022. Seventeen industries reported paying higher prices for materials and services, while none reported a decrease. The index measures the breadth of price increases; it does not mean costs rose by 74%.
Supply delays added to the strain on companies. Reuters reported that strong demand was stretching supply chains, while disruptions linked to the war with Iran had increased energy costs and affected commodity supplies. The supplier deliveries index climbed to 53.2 from 51.3, indicating slower deliveries. These pressures could keep inflation elevated into next year, although that remains an outlook rather than a certainty.
For households, including Albanian families in the United States, the concern is whether businesses pass higher operating expenses on to customers. That could increase the cost of services and everyday purchases, adding pressure to monthly budgets. However, the report does not announce specific consumer price increases. It shows continued economic growth alongside rising business costs—a combination that could complicate efforts to bring inflation down.