The flash S&P Global purchasing managers’ survey released on October 23, 2026 showed US private-sector activity kept growing strongly this month. The composite index eased to 57.6 from 58.4 in September, which had been a 62-month high, but it came in slightly above expectations of 57.4 and remains the second-highest reading since March 2022. Any reading above 50 signals expansion.
Services cool slightly, manufacturing improves
The services business activity index slipped to 57.9 from 58.8, a two-month low and just under the 58.0 forecast. Manufacturing, by contrast, edged up to 56.0 from 55.9, a 53-month high, although the manufacturing output index dipped slightly to 55.8.
Strong orders and faster hiring
The survey showed new orders growing at the fastest pace in more than four and a half years, while employment rose at the second-fastest rate in over four years. S&P Global’s chief business economist said the data are consistent with annualised GDP growth of about 5%.
The worrying part: prices
What caught the market’s attention was prices. Companies raised their selling prices at the fastest pace since August 2022 as they passed higher costs on to customers. It comes ahead of the Federal Reserve meeting on October 27–28, where markets expect rates to be held this month, with a strong probability of a hike in December according to the FedWatch tool.
Why it matters for traders
- The dollar: a strong economy with rising price pressure supports expectations of tighter policy, which usually supports the dollar.
- Gold: higher rate expectations weigh on gold, which pays no yield.
- US indices: strong growth is good for earnings, but higher rates can cap equity valuations.
A reminder: flash readings can be revised, and their impact depends on later data and on what the Fed says. Never base a decision on one number, and use leverage with care.
Why it matters
New orders grew at the fastest pace in more than four and a half years and manufacturing hit a 53-month high, while firms passed on higher costs at the fastest pace since August 2022.
Market reaction
The composite came in at 57.6, slightly above the 57.4 forecast, keeping attention on price pressure and bets on a US rate hike in December.
MIZANOVA view
The Fed meeting on October 27–28 is the key event; the tone of its statement on inflation will set the short-term direction for the dollar and gold.
