U.S. Service Sector Contracts Amid Rising Input Costs

The U.S. service sector has experienced its first contraction in nearly a year, signaling potential slow economic growth and high inflation. According to BlockBeats, this decline was driven by rising input prices. 💰 The Institute for Supply Management (ISM) reported on Wednesday that the U.S. non-manufacturing PMI fell below the 50 threshold for the first time since June 2024, dropping to a reading of 49.9. This decline in activity was likely influenced by shrinking purchasing power as tariffs contributed to higher input prices and weakened demand.