Economic activity in the service sector fell in May for the first time in nearly a year, according to new data out this week from a survey by the Institute for Supply Management.

The ISM found business managers are starting to feel the effects of tariffs.

Higher import taxes are trickling into the service sector. Even if they’re not selling goods, service companies have to buy goods to operate and a lot of those goods were subject to new tariffs last month.

Take a new restaurant, for example, said Shannon Grein, an economist at Wells Fargo. “You need the lighting, and you need the chairs and you need the tables, and you need all the things that set that operation up.”

Companies from food service to retail to finance and insurance all reported paying more for the stuff they needed in May, according to the ISM.

What’s not clear yet: “How sustained or sticky is this price pressure?” Grein said. It’ll take a few months to find out.

What this report does show is businesses across the economy have been trying to prepare for the impact of tariffs.

Many stocked up in April, but as they work through that inventory, they’ll have to re-stock at higher prices, per Betsey Stevenson at the University of Michigan.

So now, “the things companies have done to try to brace for the storm, it's starting to not be enough,” she said.

Soon, Stevenson added, consumers will start to feel more of a pinch from tariffs as the summer goes on.