US Manufacturing Hits 53-Month High in October

S&P Global Market Intelligence reported that the US manufacturing sector reached a 53-month high in October, with the preliminary Purchasing Managers' Index rising to 56.0. This growth, combined with a services sector reading of 57.9, suggests the US economy is expanding at an annualized GDP rate of 5 percent for the start of the fourth quarter.

Corporate earnings and hiring have surged to meet customer demand, though the report warns of significant cost pressures. Rising oil prices, intensifying supply chain bottlenecks, and growing order backlogs have pushed companies to increase selling prices at the fastest pace in over four years. These trends indicate that consumer price inflation may rise further above the target set by the Federal Reserve System.