US private-sector activity kept expanding in October, but the PMI Composite eased to 57.6 from 58.4. Selling-price inflation accelerated to its fastest pace since August 2022. Strong demand and rising backlogs may be helping firms pass higher costs on to customers.
The US PMI Composite eased from 58.4 to 57.6 in October, yet it stayed at its second-highest level since March 2022. The latest PMI survey also showed that selling-price inflation accelerated to its fastest pace since August 2022. Survey responses were collected October 9–22.
Manufacturing edges up as services cool
PMI Services moderated from 58.8 to 57.9, matching expectations. PMI Manufacturing, however, edged up from 55.9 to 56.0, above the 55.6 consensus, and reached a 53-month high.
Manufacturing output growth slowed slightly from 56.2 to 55.8. Even so, the survey described it as robust.
Orders, hiring and backlogs climb
New orders increased at their fastest pace in more than four and a half years, led by stronger services demand. Export growth also accelerated to its highest since May 2022, and manufacturing export orders returned to expansion for the first time since June 2025.
Employment increased at its second-fastest pace in over four years, while manufacturing hiring reached its strongest rate since March 2012. Meanwhile, backlogs accumulated at their fastest pace since May 2022, which points to mounting pressure on operating capacity.
Price pressures spread across sectors
Selling-price inflation accelerated across both manufacturing and services. Input costs stayed elevated amid higher energy, fuel, freight and raw-material prices, although overall input cost inflation eased slightly from September.
Supplier delivery times lengthened to their greatest extent since 2022. The PMI price indicators point to inflation risks, but they do not directly measure future consumer inflation.
Source: ActionForex
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