01:12 PM EDT, 10/24/2025 (MT Newswires) -- US private-sector output grew in October at the fastest pace in three months amid gains in both manufacturing and services, according to S&P Global's ( SPGI ) flash purchasing managers' index released Friday.

The composite output index rose to 54.8 this month from 53.9 in September, compared with a 53.5 reading in a survey compiled by Bloomberg. The 50-point mark separates expansion from contraction.

The manufacturing PMI climbed to a two-month high of 52.2 from 52, while the gauge for services activity hit a three-month high of 55.2, up from 54.2. Wall Street was looking for readings of 52 and 53.5, respectively.

"October's flash PMI data point to sustained strong economic growth at the start of the fourth quarter, with business activity picking up momentum across both manufacturing and services despite some reports of businesses being adversely impacted by the government shutdown," S&P Global Market Intelligence Chief Business Economist Chris Williamson said in the report.

The shutdown entered its 24th day on Friday, with no end in sight yet.

The data signaled that the world's biggest economy was growing at a 2.5% annualized pace this month, following a similar estimated gain for the third quarter, according to Williamson.

"However, business confidence in the outlook for the coming year has deteriorated further, and is at one of the lowest levels seen over the past three years as companies worry about the impact of policies, most notably tariffs," he said.

In a social media post Thursday, President Donald Trump announced the US terminated all trade negotiations with Canada due to a Canadian advertisement featuring the voice of former US President Ronald Reagan criticizing tariffs on foreign goods.

The ongoing trade tensions between the US and China have also been in the spotlight. The Trump administration is contemplating a plan to curb various software-powered exports to China, including jet engines and laptops, in retaliation to Beijing's recent move to restrict exports of rare earths minerals, Reuters reported Wednesday, citing a US official and three people briefed by US authorities.

White House Press Secretary Karoline Leavitt said Thursday that Trump will meet with his Chinese counterpart, Xi Jinping, in South Korea on Oct. 30.

"Although input costs continued to rise sharply again in October, principally reflecting the pass-through of tariffs, average selling price inflation has cooled to the lowest since April as firms compete on price to win sales," Williamson said.

Official data released Friday showed US consumer prices rose less than expected in September, while core inflation surprisingly ticked down. Still, annual headline and core inflation, both at 3% last month, remain above the Federal Reserve's 2% target.

Price: 490.96, Change: +8.26, Percent Change: +1.71