US Business Activity Climbs in October Amid Declining Confidence Due to Tariffs

U.S. business activity accelerated in October, reaching its strongest pace since July, driven by growth in both manufacturing and services sectors. Despite this positive momentum, business confidence has declined to one of the lowest levels in three years, largely due to concerns over tariffs and protectionist trade policies under President Trump's administration, which have also contributed to a slump in exports and rising inventories of unsold goods. The services sector showed robust expansion and hiring, while manufacturing faced challenges including sluggish export orders and difficulty in hiring suitable workers. Political uncertainty, including government shutdowns and tariff-related costs, added to the cautious business outlook. Inflation pressures were mixed, with selling prices rising at the slowest rate since April while input costs continued to increase sharply. The Federal Reserve is expected to cut interest rates in response to these mixed economic signals and ongoing policy uncertainty.