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A person shops at a Whole Foods Market grocery store on December 17, 2024 in New York City.\u00a0<\/p>\n
Spencer Platt | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
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.<\/p>\n
The Institute for Supply Management\u2019s services index <\/a>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%.<\/p>\n 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\u2019s Business Survey Committee. The prices index hit its highest level since February 2023.<\/p>\n \u201cThere was general optimism expressed across many industries, but tariff concerns elicited the most panelist comments,\u201d Miller said.<\/p>\n President-elect Donald Trump<\/a> has vowed to enact sweeping tariffs after he takes office later this month. Trump on Monday denied a Washington Post report<\/a> that he was considering a narrower, more targeted approach.<\/p>\n