U.S. Business Activity Hits 58.4, Highest Since 2021 as Supply Strains Stoke Inflation
Updated
Updated · Detroit News · Sep 23
U.S. Business Activity Hits 58.4, Highest Since 2021 as Supply Strains Stoke Inflation
3 articles · Updated · Detroit News · Sep 23
Summary
S&P Global’s flash U.S. Composite PMI Output Index climbed to 58.4 in September from 56.0, its highest since July 2021 and a pace consistent with roughly 5% annualized growth.
New orders drove the surge, with that gauge rising to 58.2 from 55.2, while backlogs hit their highest since May 2022 as firms struggled to keep up.
Those capacity strains fed inflation: input prices jumped to 66.4 from 59.9, the highest since October 2022, and supplier delivery delays were the most widespread since July 2022.
S&P Global said the bottlenecks were tied largely to the seventh month of the U.S.-Israeli war with Iran, while hiring increased but companies still reported difficulty finding suitable staff.
The stronger activity contrasts with a 1.5% growth rate in April-June and reinforces the Fed’s inflation challenge after last week’s 25-basis-point rate hike to a 3.75%-4% range.