Manufacturing Growth Slows as Prices Climb

US factory activity expanded in October at a softer pace, while manufacturers passed higher costs on to customers.

Updated on Nov. 2, 2026 in Manufacturing

Bold flat-color editorial illustration of stacked steel coils and unlabeled crates beside a loading dock under a single crane arm. — US manufacturing expansion slowed in October to a PMI of 54.9, as factories passed rising input and selling prices on to customers, S&P Global reported. AI Illustration. Upload story photo >

Live Poll

Are prices for everyday goods rising faster in your area than a year ago?

S&P Global revised its US Manufacturing PMI down to 54.9 for October from a flash estimate of 56.0, below September's reading of 55.9. Output rose for a seventeenth consecutive month, but new orders grew at their slowest pace since March.

Why it matters

Rising input costs and selling prices signal inflationary pressure across the industrial economy, while strong employment gains show manufacturers still adding workers. Tariffs and supply-chain disruptions are shaping both costs and demand.

The revised October PMI of 54.9 fell from a 56.0 flash estimate and 55.9 in September, while employment expanded at the fastest rate in five and a half years. The survey does not indicate how long the current pace of hiring and price increases will last.

The players

S&P Global

S&P Global is a financial information and analytics company that publishes the widely followed Manufacturing PMI survey of purchasing managers.

The details

Manufacturers stepped up purchasing and built inventories, while stronger order books and delayed input deliveries increased backlogs. Rising energy, fuel, transportation and metal prices, combined with tariffs, drove input cost inflation, and firms raised selling prices.

September: PMI reading of 55.9 recorded.
May: Input cost inflation peaked near a four-year high.
October: PMI revised to 54.9 as output growth continued.
September 2022: Prior peak in output price inflation.

Market Landscape

Output price inflation has reached its highest level since September 2022, matching the earlier peak in the PMI's price series. The reading places October's price pressures alongside the post-pandemic inflation cycle captured by the same survey.

Higher manufacturer selling prices can flow through to consumer goods costs, affecting household budgets. Continued hiring at the fastest pace in years may also signal stronger job opportunities in factory work.

The takeaway

Watch input cost and selling price trends in manufacturing surveys, since they often precede changes in what consumers pay for goods. Tracking these monthly readings can help households anticipate price pressures in everyday purchases.