The surge reflects broad-based strength, with the service sector PMI reaching 58.7 and manufacturing climbing to 57.0. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted that the data points to an annualized growth rate of roughly 5%, marking the strongest performance since early 2015, excluding post-lockdown recovery spikes.
Gold Slides as U.S. Business Activity Hits Five-Year High
Spot gold tumbled to $4,282.81 an ounce, a 1.74% daily loss, as robust economic data signaled the fastest U.S. business growth in more than five years. The S&P Global flash Composite Purchasing Managers Index climbed to 58.4 in September, significantly outpacing analyst expectations of 55.2.
This expansion comes with mounting inflationary pressures. Firms are struggling with severe supply chain bottlenecks and labor shortages, forcing a sharp rise in work backlogs. Input costs jumped at the steepest rate in four years, driven primarily by spiking energy and transport prices. While the accumulation of uncompleted orders suggests continued output growth, the resulting pricing power among companies has intensified concerns regarding the broader inflation outlook.
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