Business activity index vs 55.9 priorEmployment 47.9 vs 48.0 priorNew orders 57.3 vs 53.5 priorPrices paid 71.3 vs 70.7 priorSupplier deliveries 55.2 vs 56.8 prior
\nInventories 62.5 vs 53.1 priorBacklog of orders 51.3 vs 53.0 priorNew export orders 50.0 vs 52.1 priorImports 51.1 vs 54.7 priorInventory sentiment 55.2 vs 55.1 prior<\/p>\n
The details are a tad worse than the headline and that prices paid number is worrisome. Despite several indicators showing a better jobs market, this one is still in contraction.<\/p>\n
Comments in the report:<\/p>\n
\u201cWe are seeing the dual effects of the administration\u2019s tariff
\npolicy dynamics and the conflict in the Persian Gulf affect our pricing.
\n Suppliers across numerous industries are trying to pass price increases
\n for fuel surcharges and increased input costs for resin-based products
\nand the like. This is the definition of inflationary pressure starting
\nto affect us. We expect significant cost increases to impact us by late
\nsecond quarter (Q2) and definitely in Q3.\u201d [Accommodation & Food
\nServices]\u201cStarting to see increased supply constraints and associated price
\nincreases, especially for construction materials and computers like
\nlaptops and tablets.\u201d [Educational Services]\u201cPatient volumes and activity remain high, employment is steady and
\nsupply chains are operating effectively. There are some product lines on
\n allocation as a direct result of the Middle East conflict; however, the
\n current state is manageable. Another concerning factor on the horizon:
\nthe current drop-out rate on Affordable Care Act (ACA) health insurance
\nplans after the federal subsidy was eliminated as of January 1.
\nYear-to-date dropout rates are approaching 14 percent, indicating we may
\n be seeing a potential increase in uninsured patients in the foreseeable
\n future. The short-term forecast is cautious optimism.\u201d [Health Care
\n& Social Assistance]\u201cThe groundwood paper market remains tight. The announced sale of
\nNorpac to International Paper has caused some tightness. We figure
\nintellectual property issues will eventually take Norpac out of the book
\n market. Freight remains expensive, with gas prices and fuel surcharges
\nstarting to come through.\u201d [Information]\u201cEffective commodity prices (oil) have increased about 20 percent so far in 2026.\u201d [Mining]\u201cDue to rising fuel costs, a major distributor has decided to hold
\nfreight with resellers until a new contract is negotiated that addresses
\n these increased expenses. Unfortunately, this means there will be
\ndelays that will impact our internal projects.\u201d [Public Administration]\u201cSupply chain reliability for aviation parts and consumables has
\ngenerally improved, but volatility in jet fuel prices \u2014 driven by
\ngeopolitical and logistics disruptions \u2014 continues to complicate
\nforecasting and inventory planning. Wage inflation and a tight labor
\nmarket for skilled personnel are increasing supplier service costs, and
\ngrowing sustainability expectations are raising demand (and cost) for
\nsustainable aviation fuel, with availability still uneven by region.
\nOverall, conditions are more stable than during the peak of supply chain
\n disruptions, but elevated fuel, labor and sustainability-related costs
\nremain key factors shaping our purchasing strategy and industry
\noutlook.\u201d [Transportation & Warehousing]\u201cInflationary pressures continue to impact pricing in certain
\ncategories. General concern over supply continuity due to unprecedented
\ndemand continues in the utility space.\u201d [Utilities]\u201cCapital expenditure energy projects continue to be delayed or
\nrevamped based on macroeconomic factors. Data center power generation
\nprojects are driving demand and reducing available inventory across the
\npiping market.\u201d [Wholesale Trade]<\/p>\n
Before today’s report, the ISM services report showed the U.S. services sector remained in expansion through April, though the details were more mixed than the headline suggested. The Services PMI slipped to 53.6 from 54.0 in March, marking the 22nd straight month above the 50 threshold.<\/p>\n","protected":false},"excerpt":{"rendered":"Business activity index vs 55.9 priorEmployment 47.9 vs 48.0 priorNew orders 57.3 vs 53.5 priorPrices paid 71.3 vs…\n","protected":false},"author":2,"featured_media":476768,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-476767","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/476767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=476767"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/476767\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/476768"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=476767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=476767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=476767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}