US Business Output Growth Hits Five-Year High in September
S&P Global's flash PMI composite output index rose to 58.4 in September from 56.0 in August, marking the strongest expansion since July 2021. Employment growth also accelerated to its fastest pace since June 2022, with companies adding jobs at a rate rarely seen since 2009.
The September flash reading of 58.4 marks a notable acceleration from August's 56.0, with any figure above 50 indicating expansion. This represents the strongest composite output growth recorded since July 2021, signaling broad-based momentum across both manufacturing and service sectors.
Hiring activity also picked up considerably, with payroll growth reaching its quickest pace since June 2022. According to S&P Global, the rate of job creation in September was rarely surpassed in data going back to 2009, suggesting businesses are responding to sustained demand by expanding their workforces.
Sustained output growth at this pace could benefit job seekers and workers through increased hiring and potential wage pressure, while investors may see continued corporate strength as supportive for equities. However, rapid expansion also carries risks—if demand outpaces supply capacity, it could reignite inflationary pressures, potentially prompting tighter monetary policy that affects borrowing costs for households and businesses. The durability of this momentum remains uncertain.