Business Costs Rose as September Activity Expanded
Rising input prices and order backlogs are forcing operators to manage capacity amid stronger national demand.
Updated on Sept. 23, 2026 in Inflation
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In September 2026, the U.S. composite purchasing managers' index increased to 58.4 from 56.0 in August, signaling a broad expansion in manufacturing and services. Higher new orders and increased input purchase prices indicate renewed inflationary pressure across sectors.
Why it matters
Renewed inflationary pressure on input costs forces operators to adjust their pricing strategies and manage margin compression. Businesses are facing these challenges due to a combination of stronger demand and restricted operating capacity.
The U.S. composite purchasing managers' index rose to 58.4 in September, up from 56.0 in August. Simultaneously, the input purchase price index climbed to 66.4, an increase from 59.9 in the prior month.
The details
Activity across the manufacturing and services sectors expanded, driven by a surge in new orders reaching 58.2. Supply-chain disruptions and limited operating capacity have combined to drive up the cost of inputs for businesses. These operational bottlenecks reflect the ongoing difficulty in balancing stronger customer demand with existing supply-side constraints.
Timeline
July 2021 marked the previous composite index high.
March 2022 saw the previous new orders high.
May 2022 recorded the previous unfinished work high.
July 2022 held the previous peak for supplier delivery delays.
September 2026 saw the composite index reach 58.4.
Market Landscape
Current operational friction marks a return to pressures similar to the 2022 supply-chain crisis. The increase in input pricing suggests that businesses are again navigating bottlenecks that previously defined the post-pandemic market cycle.
Operators should monitor their own supply-chain throughput to determine if margin compression is temporary or structural. Evaluate procurement contracts now to see if increased input costs can be mitigated through updated terms or volume adjustments.
The takeaway
Rising index figures are a signal to reassess current operating capacity before demand outstrips your supply chain. Review your inventory turnover rates and identify vendors currently passing through the steepest cost increases.
Further reading
For more on the current price environment, explore our Inflation section.
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