According to S&P Global’s flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, U.S. business activity slowed for a second straight month in September.
Despite increasing costs, the survey showed companies were not raising prices for their goods and services, which is a good sign for the inflation outlook.
In Setember the index slipped to 53.6 this month from 54.6 in August. According to the survey, a reading above 50 indicates expansion in the private sector. Activity slowed in both the manufacturing and services sectors.
While the reading indicated a second consecutive month of slower growth, it still showed the strongest quarterly expansion since late 2024.
Service-sector activity slowed to its lowest pace since June, and manufacturing output growth eased from August’s 39-month high. New orders increased more slowly, job creation cooled, and backlogs of work grew for a sixth consecutive month.
On the inflation front, input costs surged to their highest level since May—primarily driven by tariffs—marking the second-fastest rise in over two and a half years.
By CEO NA Editorial Staff
