Source: The Wall Street Journal
Date: 23rd eptember 2025

S&P Global PMI points to softer demand, easing price pressures, and implications for logistics flows.

U.S. business activity continued to expand in September but at a slower pace, according to S&P Global’s Flash U.S. Composite PMI.

The index slipped to 53.6 from 54.6 in August, marking the weakest growth in three months. While readings above 50 still indicate expansion, both the manufacturing and services sectors showed reduced momentum compared to earlier in the summer.

The surveys revealed that companies are pulling back on hiring and reporting softer demand conditions. This slowdown limited firms’ ability to raise selling prices, with price increases reaching their weakest level since April.

For policymakers, this trend suggests some relief on inflation concerns following the Federal Reserve’s recent decision to cut interest rates for the first time this year.

Input costs remain under pressure due to tariffs, but fewer businesses are passing these costs on to customers, pointing to tighter margins for companies.

The cooling of business activity signals potential shifts in freight volumes. Softer demand in manufacturing may mean slower factory output, translating into reduced export and domestic shipment flows.

Service sector deceleration, often linked with consumer spending, could also dampen demand for retail logistics and e-commerce deliveries. While this easing may reduce congestion and stabilise freight rates in the short term, shippers should prepare for fluctuating cargo demand as the economy balances slower growth with moderating inflation.