Business Booms but US Supply Chains Struggle Amid Iran Conflict
US business activity has surged to its strongest level in over five years, according to S&P Global's flash US Composite PMI Output Index. The index rose to 58.4 in September from 56.0 in August, a reading above 50 indicating expansion in the private sector.
The economy is growing at an annualized rate of about five percent, consistent with the Atlanta Federal Reserve's gross domestic product estimate of 5.1 percent. In the April-June quarter, the economy grew at a 1.5 percent pace.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said 'Business is clearly booming now in both manufacturing and services.' However, this growth is being accompanied by severe supply chain bottlenecks, largely resulting from the US-Israeli war with Iran.