S&P Global’s September flash survey put its Composite Output Index at 58.4, the fastest pace of US business growth in more than five years and up from 56.0 in August. Chief economist Chris Williamson said the report shows “business is clearly booming now in both manufacturing and services,” with service providers doing most of the heavy lifting.
For freelancers and independent consultants, a reading this strong usually signals that clients are opening their budgets again. But the same survey flags a catch: input costs and selling prices are both climbing, so stronger demand may arrive bundled with tighter margins for anyone who buys materials or subcontracts help.
What The September Flash PMI Actually Found
Manufacturing output grew at its fastest clip since April 2022, while services activity pushed the overall composite index higher still. Companies expanded payrolls at the quickest pace since June 2022, a sign that firms are hiring to keep up with new orders rather than waiting out the growth.
Backlogs of uncompleted work also grew, which Williamson called a good sign for continued expansion in the months ahead. At the same time, input costs hit their highest level since October 2022, and businesses now expect inflation to run at 2.4% over the next year, up from 2.2% in August.
Why This Matters For Self-Employed Consultants And Contractors
Strong service-sector growth is typically good news for anyone who sells expertise rather than products: marketing consultants, IT contractors, designers, and coaches tend to see more client inquiries when business activity accelerates this quickly. Growing backlogs at client companies can also translate into longer project pipelines for outside help.
The flip side is that rising input costs are squeezing the same clients who might hire you, and the survey notes companies are gaining more pricing power to pass those costs on. If you buy software, materials, or subcontracted labor to deliver your own services, expect those line items to get pricier too.
What Self-Employed Workers Should Do Next
Since businesses report growing room to raise prices without losing customers, this is a reasonable moment to revisit your own rates rather than assume clients will push back. Check what comparable freelancers in your field are charging before your next contract renewal.
Build in a buffer for rising costs on anything you buy to deliver client work, from software subscriptions to shipping. A pricing cushion now is easier to add gradually than to justify all at once later if costs keep climbing.
What To Watch Next
Watch for the final September PMI revision and how the latest jobs data lines up with this hiring pickup, since a mismatch between the two reports would be worth noting. The Federal Reserve will also be weighing this fresh inflation pressure against its next rate decision.
Q3 GDP figures, due in the coming weeks, should show whether this flash reading holds up or cools off once the full data set arrives. Self-employed workers in client-facing service businesses have the most riding on which way that goes.
