US business activity cools in October, but output prices climb to highest since 2022
S&P Global's flash US Composite PMI eased to 57.6 in October from a five-year high of 58.4, yet its output price gauge rose to 59.8, the highest since August 2022, signalling that inflation pressure may persist, Reuters reported.
US private-sector activity slowed modestly in October, but strong demand let companies keep raising prices, Reuters reported on 23 October.
The numbers
S&P Global’s flash US Composite PMI slipped to 57.6 from a five-year high of 58.4 in September; any reading above 50 means expansion. Manufacturing strength was offset by a slight pullback in services. New orders edged up to 58.2, the highest since March 2022. The output price gauge rose to 59.8, the highest since August 2022, while suppliers’ delivery times fell to a more than four-year low of 38.1 — a sign of worsening bottlenecks. Factory employment reached its highest level since March 2012.
Why it matters
“Cost pressures remain a key concern,” said S&P Global’s chief business economist Chris Williamson. The economy has so far absorbed the oil shock from the US-Israeli war with Iran, Reuters noted, but economists warn that inflation could slow consumer spending this quarter. The Fed raised rates to 3.75%–4.00% in September; economists expect it to hold next week and hike again in December.
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