S&P Global Market Intelligence chief commercial economist Chris Williamson said
US factories stayed in strong expansion in October, with manufacturing seeing
its best growth since early 2022 and employment rising at the fastest pace in 5½
years, to last levels seen during the COVID demand surge. Supply‑chain
disruptions—acute shortages for AI‑related goods and equipment and
shipping/logistics delays more widespread than at any time since 2022—are
preventing factories from meeting demand; producers are increasingly able to
pass higher costs, especially energy inputs, to customers. Factory‑gate
inflation accelerated in October to its strongest since September 2022 and is
likely to feed through to consumer inflation in coming months, keeping inflation
above the Fed’s target and increasing pressure for further rate hikes.
