Business activity at more than five-year high; inflation pressures building

U.S. business activity hit a more than five-year high in September, driven by a surge in new orders, but it also worsened inflation pressures as demand strained supply chains. S&P Global’s flash US Composite PMI Output Index rose to 58.4, the highest since July 2021, from 56.0 in August. A reading above 50 signals expansion. The report pointed to sharp increases in work backlogs and supply chain delays, reflecting limited operating capacity that fed into higher prices. New orders jumped to 58.2, the strongest since March 2022, and input prices paid climbed to 66.4, the highest since October 2022.