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S&P Global Data Shows Fastest US Business Growth Since Post-COVID Reopening
U.S. business activity grew in September at the fastest rate for over five years, according to the S&P Global US Flash PMI released Wednesday (Sept. 23).
The flash S&P Global US PMI Composite Output Index rose from 56.0 in August to 58.4 in September, marking the fourth consecutive month of accelerating growth as well as the fastest expansion since July 2021, according to the report.
The PMI, or Purchasing Managers’ Index, is a widely followed economic indicator that shows how private-sector businesses are performing, according to S&P Global. The headline number indicates the overall health of the economy, with readings over 50 representing economic expansion compared to the month prior, per the company.
The headline number’s growth in September was driven by a further surge in service sector output and an improvement in manufacturing output. Service sector output rose at the steepest rate in over five years, and manufacturing output accelerated at the fastest pace since April 2022, according to the report.
In addition, the service sector’s new order inflows reached the highest pace since March 2022 and those of the manufacturing sector were the highest since April 2022, per the report. The report attributed the growth in new order inflows to domestic demand, as goods export volumes fell and services exports rose modestly.
“To put the growth surge in context, barring the spike in demand following the opening up of the economy after the COVID-19 lockdowns, the latest improvement in business activity is the greatest recorded since early 2015,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in the report. “Business is clearly booming now in both manufacturing and services.”
The most recent The Conference Board Measure of CEO Confidence, which was released Aug. 6 and covered the third quarter, found that CEO confidence rose from 47 to 52 in the third quarter, reflecting a shift to more positive than negative responses.
The most recent NFIB Small Business Optimism Index, which was released by the National Federation of Independent Business on Sept. 8 and covered August, found that the Index dipped in August to 98.7 but remained 1.1 points behind July, which saw the highest level since August 2025, and stayed above the 52-year average of 98.0.
Source: PYMNTS.com