US DATA: Flash PMIs Point To Solid Activity And Moderating Price Metrics

• Manufacturing PMI: 52.2 (Bloomberg cons 52.0) in Oct prelim after 52.0 in Sep – now a two-month high
• Services PMI: 55.2 (cons 53.5) after 54.2 – now a three-month high
• Composite PMI: 54.8 (cons 53.3) after 53.9 – now a three-month high

The PMI press release (link) notes strong business activity growth (second-fastest of the year) although prices charged rose at their softest rate since April:

• "US business activity growth accelerated in October to the second-fastest so far this year, according to early ‘flash’ PMI data, accompanied by the largest rise in new business seen in 2025 to date. Improvements in output and new work were recorded in manufacturing and services, though both sectors signaled falling exports. Factories also reported falling input buying amid a steep drop in backlogs of work and an unprecedented build-up of unsold stock.
• Meanwhile, while employment growth picked up, the pace of job creation remained only modest, and weakened especially in manufacturing. Jobs growth was also limited by a worsening of business confidence, principally reflecting ongoing concerns over the impact of government policies such as tariffs. Sentiment was supported, however, by lower interest rates. 

• Prices charged for goods and services rose at the slowest rate since April, but firms’ costs continued to increase sharply, attributed to the impact of tariffs alongside upward wage pressures."