U.S. Business Costs Rose in September
Higher input costs and strong demand signaled a shift in business pricing dynamics for households to watch.
Updated on Sept. 23, 2026 in Inflation
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The U.S. composite purchasing managers' index reached 58.4 in September, up from 56.0 in August. This expansion was driven by stronger demand and rising backlogs across the manufacturing and services sectors.
Why it matters
Renewed inflationary pressure from higher input purchase prices, which rose to 66.4 in September from 59.9 in August, can influence the final costs businesses pass on to consumers. These cost increases are driven by supply-chain disruptions and limited operating capacity.
The input purchase price index rose to 66.4 in September, up from 59.9 in August. The broader composite purchasing managers' index also climbed to 58.4, signaling increased business activity and supply-chain pressures.
The details
Businesses are facing higher costs as supply-chain disruptions and capacity constraints force them to spend more to secure inputs. With new orders reaching 58.2, companies are seeing stronger demand that, when paired with mounting backlogs, creates upward pressure on pricing. This cycle often leads companies to adjust their own output prices to maintain margins, directly impacting household budgets.
Timeline
July 2021 was the previous high for the composite index.
March 2022 marked the previous high for new orders.
May 2022 saw the previous peak for unfinished work.
July 2022 recorded the previous high for supplier delivery delays.
The composite index reached 58.4 in September 2026.
Money Landscape
The September 2026 index readings indicate that current supply-chain strains and cost pressures are once again testing levels comparable to the July 2022 supplier delivery delays. This shift marks a departure from the more stable business environment observed earlier in the year.
Rising input prices often precede increases in the final costs of goods and services that households purchase. Consumers should monitor their monthly spending categories for early signs of price inflation and discuss potential budget adjustments with a qualified financial professional.
The takeaway
The rise in purchasing activity and input prices suggests that businesses are again managing tight capacity and supply-chain friction. Consumers should review their recent receipts for early signs of rising prices and track future reports on producer price indices for broader trends.
Further reading
For more information on how current economic conditions affect household purchasing power, visit Inflation.
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