FX.co ★ US Business Activity Growth Slows for Second Month

In September 2025, the S&P Global US Composite PMI registered a decline to 53.6, down from 54.6 in August, as revealed by a preliminary estimate. Although this indicated a continued moderation in growth for the second month, it still reflected the most robust quarterly expansion since the end of 2024. Activity in the service sector decelerated to its slowest pace since June, while the growth in manufacturing output also reduced from its 39-month peak observed in August. The pace of new order growth diminished, job creation saw a slowdown, and work backlogs continued to rise for the sixth consecutive month. In terms of inflation, input costs surged to their highest level since May, primarily influenced by tariffs, marking the second-quickest rise in over two and a half years. However, businesses noted the slowest increase in output charges since April, as subdued demand and mounting competition restricted their capability to transfer increased costs to consumers. On a brighter note, business confidence surged to its highest point in four months.