Chris Williamson, chief business economist at S&P Global Market Intelligence,
said preliminary October PMI shows the US economy remained robust at the start
of Q4, with output consistent with an about 5% annualized GDP growth trend
versus a prior Q3 projection of 4%. Corporate profits are particularly strong
and hiring has risen sharply as firms expand capacity to meet firmer demand;
excluding post-pandemic reopening effects, recent growth is the strongest since
early 2015. Cost pressures persist—an oil rebound is lifting prices across goods
and services—and worsening supply bottlenecks and rising order backlogs have
enabled firms to pass higher costs on to consumers, producing the largest rise
in selling prices in four years and suggesting consumer inflation could further
exceed the Fed’s target in coming months.
