FX.co ★ US Private Sector Expands Less Than Previously Thought

The US Composite PMI declined to 55.9 in October 2026 from 58.4 in September, marking a three-month low and undershooting the preliminary estimate of 57.6. The slowdown reflected weaker growth in both manufacturing output and services activity. Even so, new business continued to rise sharply, largely driven by robust demand in the services sector, and overall employment growth remained in positive territory. Cost pressures, while slightly softer than in September, stayed elevated, and firms increased their selling prices at the fastest rate since August 2022, underscoring ongoing inflation concerns. At the same time, confidence in the business outlook weakened, slipping to its lowest level since May. Taken together, the survey indicates that the economy is still expanding, but moderating momentum, persistent price pressures, and eroding business confidence point to mounting challenges for the private sector.