The latest data released by the Institute for Supply Management (ISM) shows that non-manufacturing prices in the United States took a dip in February 2024. The indicator declined to 58.6 from the previous month's reading of 64, indicating a slowdown in price growth in the services sector. This decrease suggests that businesses in the non-manufacturing industry experienced less inflationary pressure in February.
The ISM Non-Manufacturing Prices index is a key metric that provides insights into inflation trends in the vast services sector of the U.S. economy. A reading above 50 indicates expansion, while a reading below 50 signals contraction. Despite the drop in February, the index remains above the 50-point threshold, reflecting ongoing price increases.
Economists and market analysts will be monitoring future data releases to assess whether this decline in non-manufacturing prices is a temporary fluctuation or the beginning of a more sustained trend impacting the broader economic landscape. The next ISM report will provide further clarity on the inflationary dynamics in the U.S. services industry.
