U.S. Economy Shows Continued Resilience in October

The American economy remained vibrant in October, with business activity experiencing robust growth, which is the most rapid seen in over four years. Manufacturing conditions reached their strongest mark since 2022, and factory hiring saw its quickest pace in nearly 15 years.

According to the S&P Global flash U.S. Composite Purchasing Managers’ Index, the figure for October was 57.6. This is a slight decrease from September’s 58.4 but still reflects the second-highest level since March 2022. Generally, a reading above 50 indicates expansion, and higher scores suggest more widespread growth.

The survey highlighted strong growth in both manufacturing and services, driven by solid domestic demand, increased exports, and a surge in new orders.

“The October flash PMI indicates that the U.S. economy is thriving as we enter the fourth quarter,” noted Chris Williamson, chief business economist at S&P Global Market Intelligence.

Williamson further pointed out that these survey results align with expectations for a 5 percent annualized increase in GDP for the fourth quarter, following an estimated 4 percent rise in the previous quarter.

Excluding the post-pandemic economic reopening, this period has shown the most sustained business growth since early 2015, according to S&P Global.

Manufacturing Sector Experiences Notable Growth

The report indicated that the manufacturing sector performed particularly well in October.

The S&P Global Manufacturing PMI increased to 56.0 from September’s 55.9, marking the highest figure in 53 months. This suggests the most significant improvement in manufacturing business conditions since May 2022.

Factory production continued to rise swiftly, with the manufacturing output index at 55.8, a slight drop from 56.2 in September. New orders maintained strong growth, albeit at a slightly slower pace than the previous month.

Manufacturing hiring surged to its fastest rate since March 2012, indicating that factories are boosting their workforce to meet rising demand and enhance production capabilities.

Furthermore, manufacturers reported increased purchases of materials and rising inventories, with the accumulation of input stocks growing at the most rapid pace in four months.

Business confidence in the manufacturing sector improved significantly, approaching its long-term average as companies displayed increased optimism about future demand and economic conditions.

The services sector also demonstrated rapid growth. The flash Services PMI Business Activity Index was 57.9 in October, down from 58.8 in September. Even though there was a modest decline, the index remained among the strongest over the past five years.

Surge in New Orders and Employment

One of the strongest indicators of ongoing economic momentum was the increase in new orders, which reached its highest rate in over four and a half years.

Service sectors noted their greatest rise in new business since March 2022, while manufacturing orders continued to grow robustly.

This increased demand also led to a significant rise in unfinished work. Backlogs of orders grew at the fastest rate since May 2022, indicating businesses are receiving more orders than they can fulfill right away.

In response, companies have ramped up hiring.

Employment in manufacturing and services rose at the second-fastest rate since June 2022, just behind September’s growth. Manufacturing job growth was at its most robust level since March 2012, while services employment saw one of its largest increases in over four years.

This increase in hiring suggests that businesses are looking to expand their workforce to meet rising demands rather than anticipating a quick end to the current growth period.

The report also indicated that demand from international customers is strengthening.

Export orders saw their fastest rise since May 2022, with manufacturers noting their first increase in export orders since June 2025, and service firms reported their strongest export growth since July 2023.

This uptick in foreign sales suggests that international demand may be beginning to bolster an expansion largely driven by American consumers and businesses.

Strong Growth Amid Rising Costs

The survey also revealed that businesses are contending with increasing costs as economic activity ramps up.

Prices for goods and services climbed at their fastest rate since August 2022, with companies citing higher energy and transport expenses, as well as increases in raw material prices and wages.

Rising demand and accumulating backlogs have allowed businesses to pass some of these costs on to consumers.

Moreover, supply chains are showing signs of stress, as manufacturers reported longer delivery times, material shortages, and increased pressure on suppliers.

Despite these obstacles, business expectations for growth over the coming year remain near their highest levels since 2026. Optimism within the manufacturing sector has surged significantly, although confidence among service firms has slightly diminished since September.