As we noted on Tuesday (see here and here), the ISM’s report on the manufacturing sector showed a significant acceleration in price increases in December. Today’s release of the non-manufacturing report similarly showed prices paid have continued to rise, albeit at a slower pace as the index fell to 64.8 from 66.1 in November. Granted, the rate of price increases remains at one of the highest levels of the past decade.
One other notable similarity between the two reports was the price changes for commodities. As we noted on Tuesday, prices for freight, steel products, and some PPE materials were all observed as moving higher. That was also the case for the service sector. Taking a closer look, though, a wider variety of PPE products are in short supply, and as a result, are moving higher in price than was shown in the manufacturing report. More specifically, only gloves were noted as moving higher in price in the manufacturing report, but the services report saw higher prices in not only gloves but also gowns and masks. Additionally, and perhaps one of the most interesting aspects of the report for the Services sector was that just like Tuesday’s release there was not a single commodity reported as falling in price. Click here to view Bespoke’s premium membership options for our best research available.