US business activity at more than five-year high; inflation pressures building

The survey's gauge of prices paid by businesses for inputs jumped to 66.4, the highest reading since October 2022, from 59.9 in August. Both services and manufacturing businesses reported higher input prices. S&P Global noted that high raw materials prices in manufacturing were also often linked to supply shortages. It said suppliers' delivery times lengthened considerably on average, "with the incidence of supply chain delays the most widespread since July 2022."

A measure of prices paid increased, with the sharpest gain in the services sector.

Further gains are likely as record high diesel prices will, among other things, boost the cost of transporting goods. The Federal Reserve last week raised its benchmark overnight interest rate by 25 basis points to the 3.75%-4.00% range and flagged more hikes in the coming months.