Business activity expanded in the US, prices recorded their biggest increase since 2022

The S&P Global leading composite index (PMI) decreased by 0.8 points to 57.6 in October, the second highest value recorded since 2022.

The indicator measuring sales prices recorded the fastest pace of increase in more than four years, reflecting the sharp rise in energy, transportation and raw material costs.

“Cost pressures remain a significant concern, particularly as the new increase in oil prices begins to impact a wide range of goods and services,” Chris Williamson, chief economist at S&P Global Market Intelligence, said in a statement.

Supply shortages have also worsened. Suppliers' delivery times have extended the most since 2022. S&P Global cited material and labor shortages, as well as supplier overload and shipping delays, as reasons for this.

Williamson noted that aside from the reopening of the economy following the pandemic, U.S. businesses are experiencing their strongest period of growth since 2015.

Strong consumer spending, AI-powered investments and defense spending have supported U.S. businesses this year. New orders, an indicator of demand, grew at the fastest pace in four and a half years in October.

Companies are responding by hiring more workers. While the employment composite index reached its second highest level in the last four years, the manufacturing index revealed that the number of factory employees increased at the fastest rate since 2012.

The group's general manufacturing index rose to 56, reaching its highest level since May 2022, while the activity indicator in the services sector recorded a slight decrease.