U.S. Business Activity Expands Slightly as Prices Rise Fastest Since 2022

U.S. business activity grew a little in October, while prices climbed at their quickest rate since 2022, a combination that may shape Federal Reserve rate expectations and asset prices.

Higher fuel, transportation and wage costs contributed to the price increase, adding inflation pressure while activity continued to grow.

Earlier in September, the S&P Global U.S. composite PMI posted a 58.4 reading; no higher level had been recorded since July 2021. The reading is covered in September’s 58.4 S&P Global U.S. composite PMI update.

The combination of growth and faster price increases may influence expectations for Federal Reserve interest rates and, in turn, asset prices, including cryptocurrencies. Investors will watch further economic data and comments from Fed Chair Jerome Powell for more signals on the outlook.