The ISM services index Tuesday posted a reading of 54.1%, up 2 percentage points from November and above the Dow Jones consensus forecast of 53.4%. Along with the better overall reading, the prices index jumped to 64.4%, an increase of 6.2 points or more than 10%. It was the first time the index had eclipsed 60% since January of 2024. Activity in the U.S.
services industry accelerated in December but brought with it a sharp rise in expectations for price increases as businesses grew concerned about the impact tariffs would have on inflation.Tuesday posted a reading of 54.1%, representing the share of businesses expecting growth. That was up 2 percentage points from November and better than the Dow Jones survey of economists showing a consensus forecast of 53.4%. Along with the better overall reading, the prices index jumped to 64.4%, an increase of 6.2 points or more than 10%. It was the first time the index had eclipsed 60% since January 2024, said Steve Miller, chair of ISM's Business Survey Committee. The prices index hit its highest level since February 2023. 'There was general optimism expressed across many industries, but tariff concerns elicited the most panelist comments,' Miller said.Trump announces $20 billion foreign investment to build new U.S. data centers Treasury yields, particularly at the longer-dated end of the curve, moved higher following the release. The benchmark 10-year note most recently yielded 4.68%, up .065 percentage point, or 6.5 basis points, on the session. In the services survey, multiple respondents cited tariffs as a concern while noting a generally positive business climate wrapping up 2024. Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly 'Seems to be a lot of uncertainty about tariffs and purchasing decisions. A lot of wait and see,' said one respondent in the transportation and warehousing industr