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US business activity cools in October; strong demand fueling price 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 costs for energy, transportation, and raw materials surged.
- Factory employment reached its highest level since March 2012 as manufacturers boosted headcount, yet supplier delivery times worsened to their greatest extent since 2022, reflecting material shortages and shipping delays.
- Companies are seeking "to boost capacity to fulfill stronger customer demand," said Chris Williamson, chief business economist at S&P Global Market Intelligence; economists expect The Federal Reserve to stand pat next week.
- Investment in AI and related technologies is anticipated to support demand next year, while strong consumer spending and defense outlays bolstered businesses this year with new orders growing at the fastest pace in 4½ years.
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23 Articles
23 Articles
U.S. Economy Booms as Business Activity, Hiring and New Orders Surge
The American economy continued to boom in October, with business activity expanding at one of the fastest rates in more than four years, manufacturing conditions reaching their strongest level since 2022, and factory hiring accelerating to its fastest pace in nearly 15 years.
·Los Angeles, United States
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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.
·Budapest, Hungary
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Coverage Details
Total News Sources23
Leaning Left0Leaning Right5Center9Last UpdatedBias Distribution64% Center
Bias Distribution
- 64% of the sources are Center
64% Center
C 64%
R 36%
Factuality
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