The U.S. Composite PMI index reached 55.9 in October 2026, which represents a significant decline from 58.4 in September 2026. This figure is also lower than the initial estimate of 57.6 and has reached its lowest level in the past three months. This decline has been particularly observed in the manufacturing and services sectors, both of which are facing reduced growth.
Increase in Demand in the Services Sector
However, the level of new business continues to rise sharply, a trend that is particularly driven by strong demand in the services sector. Despite the decline in manufacturing activity, it seems that employment growth has remained generally positive. This indicates that the labor market is currently facing fewer challenges compared to other sectors.
Read more: 3% Decrease in Global LNG Supply Due to Hormuz Crisis
Cost Pressures and Inflation Concerns
Cost pressures remain high in this situation, although they have slightly decreased compared to September. Companies have reached the fastest pace of price increases since August 2022, indicating ongoing inflation concerns in the economy. Nevertheless, confidence in the business outlook has sharply declined, reaching its lowest level since May 2026.
Overall, surveys indicate continued economic expansion, but slower momentum and persistent price pressures suggest increasing challenges for the private sector. These conditions may raise concerns about the overall state of the economy and its ability to face new challenges.
Read more: Decrease in the Baltic Dry Freight Index to its Lowest Level in Two Weeks · Hamid Bord Emphasized the Role of the Private Sector in Energy Decision-Making
