S&P Global Flash U.S. Manufacturing PMI reaches 53-month high in October

The S&P Global Flash U.S. Manufacturing PMI edged up from 55.9 to 56.0 in October, a 53-month high. Factory production and new order growth slowed but remained elevated. Meanwhile, manufacturing employment rose at its fastest rate since March 2012.

Inventories increased in October, while supplier delivery times lengthened to the greatest degree since July 2022 as supply issues remain widespread. Input and selling costs continued to rise, with average input costs increasing at their fastest pace since November 2022. Overall, price pressures were strongest in manufacturing, but service sector costs also rose sharply. 

Overall business activity decreased in October, with the index declining from 58.4 to 57.6, a two-month low. Service sector growth also fell to a two-month low. Despite the slowdown, demand for both manufacturing and services remains near five-year highs, while employment rose at its second-fastest pace in four years.

Meanwhile, optimism about future conditions eased but remained strong as manufacturers’ optimism more than offset a decline in the service sector. Factory confidence also returned to its long-run average, supported by strong demand and economic resilience even as cost concerns persisted.