US business activity picks up a little in October
By Michele Maatouk
Date: Tuesday 24 Oct 2023
(Sharecast News) - US business activity picked up a little in October, while inflationary pressures eased, according to a survey out on Tuesday.
The S&P Global flash composite purchasing managers' index - which measures activity in the services and manufacturing sectors - rose to 51.0 from 50.2 in September. A reading above 50.0 indicates expansion, while a reading below signals contraction.
The manufacturing PMI ticked up to 50.0 in October from 49.8 the month before, hitting a six-month high.
Meanwhile, the services business activity index came in at 50.9 this month, versus 50.1 in September.
The survey showed that inflationary pressures eased, with cost burdens rising at the slowest pace for three years and firms moderating hikes in selling prices at the same time.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "Hopes of a soft landing for the US economy will be encouraged by the improved situation seen in October. The S&P Global PMI survey has been among the most downbeat economic indicators in recent months, so the upturn in US output growth signalled at the start of the fourth quarter is good news.
"Future output expectations have also turned up despite rising geopolitical concerns and domestic political tensions, climbing to the joint highest for nearly one-and-a-half years.
"Sentiment has improved in part due to hopes of interest rates having peaked, something which looks increasingly likely given the further cooling of inflationary pressures witnessed in October."
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