U.S. private-sector business activity slowed modestly in October, while strong demand allowed many companies to keep raising prices, according to the flash survey from S&P Global reported on October 23. The composite output index eased to 57.6 from 58.4 in September, remaining above the 50-point level that signals expansion.
The survey indicated that manufacturing strength was partly offset by a slight pullback in services. New orders edged higher, while the measure of prices charged by businesses rose to its highest level since August 2022. Supplier delivery times also deteriorated, pointing to renewed supply-chain pressure.
The combination matters for companies planning inventory, staffing and pricing. Strong orders can support revenue, but higher input costs and delivery delays can squeeze margins or force businesses to pass costs on to customers. That can complicate the inflation outlook for households and policymakers.
The survey is an early indicator rather than a final measure of economic output. Investors and business owners will compare it with official inflation, employment and spending data to assess whether demand is cooling enough to ease price pressures.
Source: Reuters reporting on S&P Global's flash PMI, October 23, 2026 — https://www.investing.com/news/economy-news/us-business-activity-cools-in-october-strong-demand-fueling-price-pressures-4969791
