US PMI Manufacturing fell from 47.9 to 47.0, marking a 15-month low. PMI Services slipped slightly from 55.7 to 55.4, while Composite PMI edged down from 54.6 to 54.4, indicating continued economic growth but at a slower pace.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted, “The data points to an economy growing at an annualized rate of 2.2% in the third quarter, driven by the robust service sector.”
However, rising inflationary pressures are cause for concern, with prices charged for goods and services increasing at the fastest rate in six months. Input costs in services, particularly wages, have surged to their highest in a year.
“FOMC may need to move cautiously in implementing further rate cuts,” Williamson added.
