US private sector growth at fastest pace in 3 months

The US private sector grew at its fastest pace in three months, but supply chain disruptions stemming from the Middle East conflict have increased delivery times for suppliers and pushed production costs to their highest level in nearly four years.

According to the preliminary reading of the S&P Global Purchasing Managers’ Index (PMI), the manufacturing sector expanded at its fastest pace in 47 months, driven by a strong increase in new orders.

The sub-index for output prices jumped to 59.9, its highest level since July 2022, fueled by delays in deliveries to U.S. factories and higher raw material costs due to geopolitical tensions in the Middle East.

US Purchasing Managers' Index – April 2026 (points)

What does this mean? The data reflects the growth of US economic activity, with the index remaining above the 50-point threshold that separates growth from contraction, but geopolitical tensions in the Middle East are exacerbating inflationary pressures.