Key facts
- US business activity slowed in October, but strong demand allowed price increases.
- The Composite PMI fell to 57.6, indicating a modest slowdown.
- New orders reached their highest level since March 2022, driven by domestic demand and exports.
- Output prices rose to their highest level since August 2022.
- Supplier delivery times worsened, indicating intensifying supply chain bottlenecks.
US business activity saw a modest slowdown in October, with the S&P Global Composite PMI Output Index falling to 57.6 from 58.4 in September. Despite the cooling activity, robust demand enabled businesses to increase prices for goods and services, reaching the highest level since August 2022. This suggests that inflation may continue to be persistent. The economy began the fourth quarter on a solid footing, with economists anticipating around 3.0% annualized GDP growth for the July-September period, supported by consumer spending and business investment. Supply chain bottlenecks have intensified, contributing to growing order backlogs and making it easier for companies to pass on higher costs to customers.