Cost pressures across US businesses are accelerating:
US manufacturers reported total operating costs jumped +8.5% in 2025, nearly double the +5.0% rise in the prior year.
At the same time, service firms saw costs rise +7.0%, also accelerating from +5.0% in 2024.
Employee health insurance was the biggest driver, surging +14.2% for manufacturers and +12.9% for service firms, with some companies reporting increases of up to +50%.
Utilities costs rose +8.5% for both sectors, with ~20% of firms reporting increases of +20% or more.
All while business insurance jumped +7.4% for manufacturers and +6.8% for service firms last year, with nearly 1 in 10 companies reporting spikes of at least +20%.
Inflationary pressures are building under the surface.

within expectation.