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Business activity expands at fastest pace since 2021
Manufacturing and services demand drove stronger hiring and orders
A worker looks through boxes in an appliance warehouse in Latham, N.Y. (Angus Mordant/Bloomberg)
Key Takeaways:
- S&P Global’s flash U.S. composite PMI rose to 58.4 in September, the highest since July 2021, signaling accelerating business activity.
- Manufacturing and services demand drove stronger hiring and orders, while fuel, transport and wage costs pushed input prices to their fastest growth since 2022.
- Companies reported worsening supply chain bottlenecks and staffing challenges as strong demand continued to outweigh energy-cost increases and Iran war-related disruptions.
U.S. business activity rose at the fastest pace in more than five years as robust demand pushed up new orders and employment at manufacturers and service providers.
The S&P Global flash U.S. composite purchasing managers index climbed to 58.4 in September, according to data released Sept. 23. That was the highest since July 2021. Figures above 50 indicate expansion.
Employment surged at a rate not seen in over four years, while input prices grew at the fastest pace since 2022. Respondents primarily blamed higher fuel and transport costs, though a pickup in wages was also noted by many firms.
“Business is clearly booming now in both manufacturing and services,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement.
“However, this growth is being accompanied by some of the most severe supply chain bottlenecks seen in the near-two-decade survey history if the pandemic is excluded, with companies also reporting increasing problems finding suitable staff,” Williamson said.
Activity at service providers increased to 58.7 in September, the highest since 2021. A gauge for employment was the strongest since June 2022.
September @SPGlobalPMI U.S. Manufacturing rose to 57.0 vs. 53.7 est. & 53.9 prior; Services PMI up to 58.7 vs. 55.8 est. & 56.5 prior; Composite PMI up to 58.4 vs. 55.3 est. & 56.0 prior pic.twitter.com/llDC7v9dMw
— Liz Ann Sonders (@LizAnnSonders) September 23, 2026
The group’s manufacturing gauge jumped to 57, the best reading since 2022. New orders, a sign of demand, registered the fastest expansion since April 2022 while hiring was the strongest since February 2021.
But supplier delivery times lengthened by the most since mid-2022 and raw material costs remained elevated, signaling supply chain pressures.
Strong consumer spending, AI-fueled business investment and defense outlays have bolstered U.S. businesses this year. The latest data from S&P Global suggest that strong demand is outweighing the jump in energy costs and supply chain snarls brought on by the Iran war.
Williamson said that outside the post-pandemic reopening of the economy, September’s business activity improvement “is the greatest recorded since early 2015.”
