US business activity expanded at a solid pace in October, with PMI Composite rising from 53.9 to 54.8. Both sectors showed improvement as Manufacturing edged up from 52.0 to 52.2 and Services climbed from 54.2 to 55.2, signaling a broad-based pickup in momentum.
According to Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, the data point to “sustained strong economic growth” at the start of the fourth quarter, consistent with an annualized expansion of around 2.5% — similar to the pace seen in Q3.
However, optimism about the future weakened noticeably. Williamson noted that business confidence fell to one of the lowest levels in three years, as companies expressed growing concern over the economic fallout from tariffs and uncertain policy direction.
Price trends offered a mixed picture. Input costs continued to rise sharply, reflecting the pass-through of tariffs, yet firms struggled to raise prices amid competitive pressures. As a result, selling price inflation cooled to its lowest since April.
