U.S. inflation risks build as S&P Global composite PMI surges to 58.4, highest since July 2021
AI Market Summary
S\u0026P Global\u0027s September flash Composite PMI surged to 58.4, with new orders and backlogs strengthening, implying robust demand and greater pricing power. Input costs and supplier delays accelerated, reinforcing inflation pressure. Markets reacted with a stronger USD, higher Treasury yields (10Y back above 5%), and weaker spot gold, consistent with tighter financial conditions as the Fed signals potential further hikes.
Impact level
● High
Affected assets
NCCOGOLD2USD/USDT-0.94%
AI Insight · NCCOGOLD2USD/USDTAI Insight
▼ Bearish
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BlockBeats reports that S&P Global data released on September 23 showed the U.S. September Composite PMI Output Flash climbed to 58.4, up sharply from 56.0 in August and the strongest reading since July 2021, pointing to solid expansion across both manufacturing and services.
The New Orders Index rose from 55.2 to 58.2, the highest level since March 2022. With demand accelerating, companies' backlogs of unfilled orders increased to the highest since May 2022. S&P Global said the growing backlog suggests output and capacity could expand further, while also signaling stronger pricing power that may add to inflation pressures.
Price metrics also moved higher. The Business Input Prices Index jumped from 59.9 to 66.4, reaching its highest since October 2022. S&P Global attributed rising costs to supply chain delays and insufficient operating capacity, noting supplier delivery times lengthened at the broadest pace since July 2022.
Market moves following the release included spot gold slipping below $4,300, the U.S. dollar index rising above 101, and U.S. Treasury yields pushing higher, with the 10-year yield back above 5%.
The Federal Reserve raised its benchmark interest rate by 25 basis points last week to a range of 3.75% to 4.00% and indicated additional increases could be possible in the coming months.
