U.S. business activity weakens again in October -S&P Global survey – Yahoo Finance

by | Oct 24, 2022 | Business

(Reuters) – U.S. business activity contracted for a fourth straight month in October, with manufacturers and services firms in a monthly survey of purchasing managers both reporting weaker client demand, the latest evidence of an economy softening in the face of high inflation and rising interest rates.S&P Global said on Monday its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 47.3 this month from a final reading of 49.5 in September.A reading below 50 indicates contraction in the private sector. Outside the slump during the first wave of the COVID-19 pandemic in the spring of 2020, business output is retreating at the swiftest pace since the 2007-2009 global financial crisis, by S&P Global’s measure at least.”The U.S. economic downturn gathered significant momentum in October, while confidence in the outlook also deteriorated sharply,” S&P Chief Business Economist Chris Williamson said in a statement. “The decline was led by a downward lurch in services activity, fueled by the rising cost of living and tightening financial conditions.”But the S&P Global survey may exaggerate the slowdown. Rival surveys from the Institute for Supply Management have shown manufacturing and services industries still expanding through September.Though gross domestic product contracted in the first and second qua …

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