Price pressures in the U.S. services sector strengthened in August, as the ISM Non-Manufacturing Prices Index rose to 72.6, up from 70.3 in July 2026. The data, updated on 3 September 2026, indicate that businesses in the non-manufacturing sector are facing higher input costs and are likely continuing to pass these on to customers.
The move from 70.3 to 72.6 underscores persistent inflationary forces in services, a key component of the U.S. economy. Elevated price readings in this segment often signal broader cost pressures, as services tend to be less sensitive to rapid disinflation than goods. While the data do not specify the sources of the increase, the accelerating price index suggests that cost dynamics in areas such as labor, utilities, and service-related inputs remain robust.
Market participants and policymakers are likely to view the August reading as a sign that underlying inflation in the services sector has not yet cooled decisively. With the index firmly above the neutral 50 level, the latest figures point to continued expansion in prices rather than a stabilization or easing of cost growth.