US Business Sector Activity Rises to 3-Month High

2025-10-24 13:49 By Agna Gabriel 1 min. read

The S&P Global US Composite PMI rose to 54.8 in October 2025 from 53.9 in September, marking the highest reading since July and signaling growth slightly above the Q3 average.

Business activity expanded for the 33rd consecutive month, with overall growth in both manufacturing (PMI 52.2) and services (PMI 54.2).

October saw the strongest increase in new business so far in 2025, though exports continued to decline.

Manufacturers reported reduced input purchases and falling backlogs, leading to a record buildup of unsold inventories.

Employment growth improved modestly but remained subdued, particularly in manufacturing, as firms expressed weaker confidence amid policy uncertainty and tariff concerns.

Still, sentiment was supported by lower interest rates.

Output prices rose at the slowest pace since April, even as input costs continued to climb sharply due to tariffs and wage pressures, highlighting ongoing cost challenges despite resilient business activity.



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