US Business Activity Growth Slows for Second Month

2025-09-23 13:55 By Joana Ferreira 1 min. read

The S&P Global US Composite PMI fell to 53.6 in September 2025 from 54.6 in August, below market expectations, a flash estimate showed.

While the reading pointed to a second consecutive month of softer growth, it still signaled the strongest quarterly expansion since late 2024.

Service-sector activity slowed to its weakest pace since June, and manufacturing output growth eased from August’s 39-month high.

New orders rose more slowly, job creation cooled, and backlogs of work increased for a sixth straight month.

On the inflation front, input costs jumped to their highest level since May—driven largely by tariffs—marking the second-fastest increase in over two and a half years.

However, firms reported the slowest rise in output charges since April, as weak demand and rising competition limited their ability to pass on higher costs.

On a more positive note, business confidence climbed to a four-month high.



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