US business activity expanded more slowly in October while companies raised selling prices at the fastest pace in more than four years, according to S&P Global survey findings reported on October 23 by Reuters and MT Newswires. The preliminary composite output index fell to 57.6 from September’s 58.4, signalling continued growth rather than a contraction.
The index combines manufacturing and services, with readings above 50 indicating expansion. TheStreet reported that October still recorded the second-strongest increase in activity since March 2022. The figures offer an early view of private-sector conditions at the start of the fourth quarter; they are survey indicators, not official economic growth figures.
Services activity eased to 57.9 from 58.8, while the manufacturing PMI edged up to 56.0 from 55.9, according to TheStreet’s account. Manufacturing output, a separate measure used in the composite index, slipped to 55.8 from 56.2. The different movements reflect distinct measures, with output still expanding in both sectors.
New orders grew at their fastest pace in more than four-and-a-half years, and export sales posted their strongest gain since May 2022, TheStreet reported. Reuters cited S&P Global economist Chris Williamson as saying that worsening supply bottlenecks and growing order backlogs made it easier for businesses to pass higher costs to customers.
MT Newswires reported that selling prices rose at the fastest rate since August 2022. In comments carried by Newsquawk, Williamson linked cost pressures to renewed oil-price increases affecting goods and services. He warned that the survey pointed to consumer inflation moving further above the Federal Reserve’s target in coming months; that is an assessment, not an official inflation reading.
The preliminary results leave businesses facing strong demand alongside persistent cost pressures. Reuters reported that the government’s first estimate of third-quarter gross domestic product is due the following week. That release will provide an official measure of the preceding quarter’s performance, separate from October’s early survey signals.
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