U.S. business activity cools in October as strong demand fuels inflation pressures
Robust demand lifted new orders and hiring, while supplier delays and higher energy and raw-material costs pushed selling prices to a four-year high, S&P Global said.
- On Friday, S&P Global reported the U.S. Composite PMI Output Index slipped to 57.6 in October from 58.4 in September, though the reading remains well above 50, indicating sustained private sector expansion.
- Robust demand allowed companies to raise prices for goods and services, with output price gauges rising to 59.8, the highest reading since August 2022, as energy and raw material costs surged.
- Factory employment reached its highest level since March 2012 as manufacturers boosted headcount, but supplier delivery times worsened to their greatest extent since 2022, reflecting material shortages and shipping delays.
- Businesses are seeking "to boost capacity to fulfill stronger customer demand," according to Chris Williamson, chief business economist at S&P Global Market Intelligence, while economists expect The Federal Reserve to stand pat next week.
- Strong consumer spending and defense outlays bolstered businesses this year with new orders growing at the fastest pace in 4½ years, while investment in AI is anticipated to support demand next year.
20 Articles
20 Articles
Washington. Business activity in the United States slowed slightly in October, although strong demand allowed them to raise prices for goods and services, indicating that inflation could continue to rise and remain high in the coming months.
The University of Michigan's October US consumer sentiment index fell to a four-month low, only slightly lower than in September. According to preliminary data from S&P Global, the US economic growth slowed in October.
The index of purchasing managers (PMI) composed of the United States, which gathers data from the industrial and service sectors, declined to 57.6 points in October, from 58.4 in September, according to data released on Friday (23) by S&P Global. The index of the service sector fell to 57.9 points, from 58.8 points in September, practically in line with the consensus of 58 points of analysts consulted by The Wall Street Journal. Above the level …
U.S. business activity cools in October; strong demand fueling price pressures
S&P Global said on Friday its flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, slipped to 57.6 this month from a five-year high reading of 58.4 in September. A reading above 50 indicates expansion in the private sector.
Coverage Details
Bias Distribution
- 64% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
