US economy shows strong Q4 start with hiring surge and rising cost pressures
Wolf Street reports that October's flash PMI data indicate the US economy continues to boom at the start of the fourth quarter, with output readings consistent with GDP growing at a 5% annualized rate after a 4% expansion in the third quarter . Wolf Street reports that corporate earnings and profits are healthy and hiring has surged as companies boost capacity to meet stronger customer demand . Wolf Street reports that backlogs rose at the sharpest rate since May 2022 across manufacturing and services, and employment rose at the second‑fastest pace in over four years . Wolf Street reports that cost pressures remain a key concern, driven by a renewed surge in oil prices and intensified supply‑chain bottlenecks .
Why it matters. Wolf Street notes that the hiring surge and capacity expansion could sustain growth momentum, but the highlighted cost pressures may challenge businesses' cost management .