US Business Activity Cools With Fewer Firms Able to Hike Prices

US business activity expanded in September at the slowest pace in three months, while cooler demand limited the ability of companies to raise prices and offset tariffs.

The S&P Global flash September composite output index fell 1 point to 53.6, according to data released Tuesday. Figures above 50 indicate expansion.

While the group’s measure of prices paid for materials climbed to a four-month high, the prices-received gauge retreated to the lowest level since April. Input prices in the service sector rose to the highest since May.

“Although tariffs were again cited as a driver of higher input costs across ...