'An economy struggling in a stagflationary environment', says S&P Global on U.S. business activity

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Economy perks up in September but still sluggish, S&P finds

The numbers: U.S. companies said business activity perked up in September largely because of an increase in new customer orders, but high inflation and lingering supply shortages posed obstacles to growth prospects.

The... The numbers: U.S. companies said business activity perked up in September largely because of an increase in new customer orders, but high inflation and lingering supply shortages posed obstacles to growth prospects. The flash U.S. services sector index, meanwhile, climbed to 49.2 from 43.7. It was the first increase in six months. The index had fallen to the lowest level since mid-2020 in the prior month.“ “The surveys continue to paint a broad picture of an economy struggling in a stagflationary environment.” ”

Key details: New orders, a sign of future sales, rebounded in September for both manufacturers and service-oriented companies such as retailers.

 

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