The US economy continued to grow at a rapid pace in October, with business activity expanding at one of the fastest rates in over four years.
What happened
The S&P Global flash US Composite Purchasing Managers’ Index indicated vigorous growth across both manufacturing and services, driven by strong domestic demand and rising exports. The manufacturing sector saw its strongest performance in 53 months, with factory production and new orders growing at a strong pace. Manufacturing employment also accelerated to its fastest rate since 2012.
The services sector continued to expand rapidly, with new orders growing at their fastest pace in over four and a half years. Companies responded to growing demand by increasing hiring, with employment across manufacturing and services rising at the second-fastest pace since 2022.
Despite facing increased costs, businesses remained optimistic about future demand and economic conditions. Export orders increased at their fastest pace since 2022, suggesting that international demand is beginning to reinforce the expansion driven by American consumers and businesses.
