Business activity expands, prices surge by most since 2022

The S&P Global flash composite index fell 0.8 point to 57.6 in October, data released Oct. 23 showed. That was the second-highest reading since 2022. Figures above 50 indicate expansion. A gauge of selling prices rose at the fastest pace in more than four years, reflecting a sharp rise in the cost of energy, transportation and raw materials. “Cost pressures remain a key concern, notably as the renewed surge in oil prices reverberates through to impact a wide variety of goods and services,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement. Bottlenecks are also getting worse. Supplier delivery times lengthened the most since 2022, with S&P Global citing material and labor shortages as well as overloaded suppliers and shipping delays. Even so, Williamson said that, outside the pandemic reopening, U.S. businesses are enjoying their strongest period of growth since 2015. Strong consumer spending, AI-fueled investment and defense outlays have all bolstered U.S. businesses this year. New orders, a gauge of demand, posted the fastest growth in 4½ years in October. Firms are responding by adding more workers. The composite index for employment was the second-highest in four years, and the manufacturing index showed factory headcount advancing at the fastest pace since 2012. PCS Software CEO Mark Hill discusses the advance of AI in the trucking industry. Tune in above or by going to RoadSigns.ttnews.com. Looking ahead, investment in artificial intelligence and related technologies is anticipated to support demand and the broader economy next year, too. Forecasters raised their estimates for private investment growth in…

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