U.S. inflation pressures heat up again, September composite PMI rises to 58.4, a more than five-year high.

BlockBeats news, September 23 — S&P Global data showed that the preliminary U.S. Composite PMI output index rose to 58.4 in September, significantly higher than 56.0 in August, marking the highest level since July 2021 and indicating clear expansion in both manufacturing and services activity. The new orders index rose from 55.2 to 58.2, the highest since March 2022.

Strong demand pushed the backlog of orders to its highest level since May 2022. S&P Global said that on one hand, the backlog of orders signals further expansion in future output and capacity, while on the other hand it also means companies have greater pricing power, which could intensify inflationary pressure.

Price indicators also rose markedly, with the input purchase price index climbing from 59.9 to 66.4, the highest since October 2022. S&P Global noted that supply chain delays and insufficient operating capacity are driving up business costs, with supplier delivery times lengthening to the most widespread extent since July 2022.

After the data was released, spot gold fell below $4,300, the U.S. dollar index rose above 101, U.S. Treasury yields moved further higher, and the 10-year U.S. Treasury yield returned above 5%. The Federal Reserve last week raised its benchmark interest rate by 25 basis points to 3.75% to 4.00% and signaled that it may continue raising rates in the coming months.