The flash composite PMI for US business activity in October measured 57.6, a decline from 58.4 in September, according to S&P Global. While the services PMI of 57.9 missed the 58.0 forecast, the manufacturing PMI hit a 53 month high of 56.0, exceeding the estimate of 55.5. S&P Global indicated that current growth levels are consistent with an annualized GDP increase of roughly 5%.
Increased demand drove higher employment and new orders, but selling prices are currently rising at the fastest rate since August 2022. S&P Global noted that while growth remains resilient, these renewed inflation pressures may complicate the Fed’s outlook on interest rates.