US Business Activity Expands in September 2026-Inflation and Supply Chains Still Pose Risk

September 23rd, 2026

ESCANABA, MI.-Business activity is showing encouraging signs for companies looking for a reason to remain optimistic. Recent indicators point to stronger demand, expanding business activity, and renewed momentum in U.S. manufacturing.

The outlook is not without challenges. Rising costs, inflation, and continuing supply-chain pressures could create difficulties for businesses as demand increases. However, a growing market also creates opportunities.

For business leaders, understanding where the economy is expanding can provide valuable information for planning. Stronger demand may influence decisions about staffing, production, investment, inventory, and the allocation of other business resources. In a changing market, knowing where opportunities and risks are developing can help businesses prepare for what comes next. Whatever that is. 🤷

U.S. Business Activity Accelerates in September, but Inflation Pressures Intensify

• The S&P Global Flash US Composite PMI rose from 56.0 in August to 58.4 in September, marking the fastest business expansion since July 2021.
• Services remained a major source of growth, while manufacturing also strengthened. The Manufacturing PMI increased from 53.9 to 57.0, its strongest reading since May 2022.
• Employment increased sharply, with job creation reaching its fastest pace since June 2022 as businesses worked to meet stronger demand and growing backlogs.
• Supply-chain constraints are becoming more significant. Backlogs increased rapidly, delivery times lengthened, and companies reported difficulty finding suitable workers, limiting operating capacity.
• Inflation pressures also intensified. Input costs rose at the fastest rate in four years, driven particularly by higher fuel and transportation costs, while raw-material shortages and supply delays added pressure on manufacturers.

S&P Global. (2026, September 23). S&P Global flash US PMI: Business growth surges to fastest for over five years and job gains accelerate, but price pressures also intensify amid spike in costs [News release]. S&P Global Market Intelligence.