US inflation: Pressure building

US: Business activity at more than five-year high; inflation pressures building. US business activity raced to a more than
five-year high in Sep, fueled by a surge in new orders, though strong demand strained supply chains and pushed prices higher.

S&P Global’s flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 58.4 this
month. That was the highest level since July 2021 and followed a reading of 56.0 in August. A reading above 50 indicates expansion in the private sector.

US inflation

The rise in the PMI reflected strong gains in both the services and manufacturing sectors. The PMI was consistent with the economy growing at around a 5% annualised rate.

It also noted a sharp rise in work backlogs and supply chain delays, pointing to a lack of operating capacity which fed through
to higher prices.

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