The S&P Global U.S. Composite Purchasing Managers' Index for October eased from September but held near its highest level in more than five years, pointing to continued momentum in the U.S. economy.
S&P Global said on the 23rd that the flash reading of its October U.S. Composite PMI came in at 57.6, down 0.8 point from 58.4 the previous month. The figure fell from September — which had marked the highest level in 62 months — but October's reading was still the second-highest since March 2022. A PMI above 50 signals expansion in the private sector, while a reading below 50 indicates contraction.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the data show "the U.S. economy continued to boom at the start of the fourth quarter," adding that the reading is consistent with gross domestic product growing at an annualized rate of 5% in the quarter.
Growth slowed from the previous month in both manufacturing and services, but the rates of increase were the strongest in about five years. The services business activity index stood at 57.9 and the manufacturing output index at 55.8. The manufacturing PMI stood out, rising to 56.0 from 55.9 a month earlier for its highest level in 53 months.
Cost pressures, however, intensified further. S&P Global said prices across goods and services rose at the fastest pace since August 2022. Williamson said cost pressures remain a key concern, pointing in particular to a renewed surge in oil prices feeding through to a range of goods and services. Worsening supply chain bottlenecks and rising order backlogs have made it easier for companies to pass higher costs on to customers, he said.
Selling prices rose at the steepest rate in four years, Williamson added, a pace that suggests consumer price inflation could run further above the Federal Reserve's target in the coming months.