US business activity expands, prices surge by most since 2022

However, American companies are enjoying their strongest period of growth since 2015, analyst says

Published Fri, Oct 23, 2026 · 10:32 PM

[WASHINGTON] US business activity grew at a slightly slower pace in October but remained close to a multi-year high as robust demand pushed new orders, employment and prices higher.

The S&P Global flash composite index fell 0.8 point to 57.6 in October, data released on Friday (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.

Bottlenecks are also getting worse. Supplier delivery times lengthened the most since 2022, with S&P Global citing material and labour shortages, as well as overloaded suppliers and shipping delays.

Even so, Williamson said that, outside the pandemic reopening, US businesses are enjoying their strongest period of growth since 2015.

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Strong consumer spending, artificial intelligence-fuelled investment and defence outlays have all bolstered US businesses this year. New orders, a gauge of demand, posted the fastest growth in four-and-a-half years in October.

Companies 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.

Looking ahead, investment in AI and related technologies is anticipated to support demand and the broader economy next year, too.