The results of the latest survey presented by IHS Markit showed that last month the business optimism of American private sector companies fell below the historical average. In October, the net balance of companies that forecast an increase in production in 2022 was +31%, which was lower than during the last survey in June (+46%) and less than the long-term average.
The data showed that both manufacturers and service providers reported a deterioration in forecasts regarding business activity, while manufacturers of goods recorded the weakest expectations regarding future output.
In addition, US private sector companies indicated a drop in confidence regarding employment growth in 2022, while investment forecasts also worsened in October. Capital expenditure forecasts also declined, although they remained generally optimistic.
Meanwhile, inflation expectations strengthened in October - firms predicted an increase in staff costs and non-staff costs. Overall, the net balance of companies expecting higher production costs has reached a new record high.