Whatever else in the economic firmament might be giving you agita \u2014 stocks, bonds, oil prices, uncertainty and volatility in all of the above \u2014 the private-sector economy is actually doing, \u201creally very well, thank you.\u201d<\/p>\n
S&P Global Market Intelligence\u2019s purchasing managers’ index<\/a>, which is based on a survey of manufacturing and service-sector companies, signaled strong, sustained economic growth in October. It also reported a pick-up in hiring plans and solid new-order flow and production levels.<\/p>\n There\u2019s still one big warning sign flashing red: inflation. The prices for the stuff companies buy and sell keep surging higher. <\/p>\n Still, the growth of U.S. business activity remained near a five-year high in October, said economist Chris Williamson at S&P Global Market Intelligence.<\/p>\n \u201cThis is another really strong report in terms of manufacturing growth, accompanied by service-sector growth as well, it\u2019s a broad-based upturn that we\u2019ve got,\u201d he said.<\/p>\n It\u2019s a welcome change from the past few years for manufacturing, which was hit hard by tariffs and the Trump administration\u2019s trade wars. <\/p>\n \u201cFor so long in manufacturing we saw dormant activity, and that has picked up quite nicely, said Nationwide Chief Economist Kathy Bostjancic.<\/p>\n She has two letters for what\u2019s driving this: \u201cAI. [It\u2019s] boosting both manufacturing and construction. We know the construction sector could use that because residential housing continues to be in the dumpster.<\/a>\u201d<\/p>\n Still, rampant price growth is not so favorable for the economy, said Williamson at S&P. \u201cWe\u2019ve got prices charged for goods and services rising at the fastest rate for four years, well above the [Federal Reserve\u2019s] target,\u201d he said.<\/p>\n So far though, corporate America is rolling with it.<\/p>\n \u201cCompanies are seeing their costs increase \u2014 notably fuel and energy \u2014 but they\u2019re able to pass that on to their customers,\u201d Williamson said, without squeezing their profit margins<\/p>\n And, without driving consumers away, said Dan North, senior economist at credit-insurer Allianz Trade.<\/p>\n \u201cConsumers [have] been driving the economy, despite terrible sentiment, and disposable personal income slowing down pretty sharply,\u201d he said.<\/p>\n