WASHINGTON, Sept. 23, 2026
Business activity in the United States accelerated to its strongest pace in more than five years in September, as a surge in new orders lifted both the manufacturing and services sectors.
The S&P Global flash Composite Purchasing Managers’ Index rose to 58.4 this month from 56.0 in August, reaching its highest level since July 2021. A reading above 50 indicates expansion in private-sector activity.
The increase was stronger than economists had anticipated and was supported by a sharp rise in new orders. Manufacturing output also strengthened, while employment in factories increased at its fastest pace since February 2021, according to the survey.
The stronger activity, however, was accompanied by rising costs and supply constraints. Businesses reported longer delivery times and growing backlogs, while input prices increased sharply.
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S&P Global said the latest survey was consistent with economic growth of around 5% on an annualized basis, although the PMI is a business survey and is not an official measure of gross domestic product.
The combination of stronger demand and higher prices could complicate the outlook for businesses and monetary policymakers. Companies are facing higher costs for inputs and services at a time when demand remains strong.
Financial markets reacted to the data with caution. Reuters reported that the yield on the benchmark 10-year U.S. Treasury note rose to its highest level since 2007, while major U.S. stock indexes declined.
The September figures provide evidence that the U.S. private sector continues to expand rapidly, but they also highlight the pressure businesses face from rising costs and constrained supply.
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