Bonds & Rates
Home›Bonds & Rates›Inflation›US PMIs jump, pushing hiring and price pressures higher
US PMIs jump, pushing hiring and price pressures higher
The September flash composite PMI reached a 62-month high as backlogs rose fastest since May 2022 and input-cost inflation hit the highest since October 2022.
US business activity accelerated sharply in September, lifting the flash PMI Composite to 58.4 from 56.0, with the index at its highest level in 62 months, according to an Action Forex analysis of the S&P Global PMIs.
The report showed broad-based strength across manufacturing and services. PMI Manufacturing rose to 57.0 from 53.9, while PMI Services climbed to 58.7 from 56.5, with growth accelerating for a fourth straight month, backed largely by domestic demand. New orders quickened in both sectors, and employment increased at the strongest pace since June 2022, while manufacturing payroll growth reached its fastest rate since February 2021.
Capacity pressures also intensified, with backlogs rising at the fastest pace since May 2022. S&P Global Chief Business Economist Chris Williamson said US business is clearly booming now in both manufacturing and services, with historical comparisons suggesting around 5% annualized growth at the survey pace and about 4% for Q3 as a whole.
On the downside, cost pressures intensified again. Overall input-cost inflation rose to the highest since October 2022, driven by higher fuel and transport costs and renewed wage pressures, while selling-price inflation accelerated from August, remaining below the March to July rates.