{"id":3762,"date":"2025-10-02T23:00:00","date_gmt":"2025-10-02T14:00:00","guid":{"rendered":"https:\/\/allaboutenglishmastery.com\/?p=3762"},"modified":"2025-10-02T17:49:02","modified_gmt":"2025-10-02T08:49:02","slug":"us-business-activity-slows-prices-stable","status":"publish","type":"post","link":"https:\/\/allaboutenglishmastery.com\/ko\/us-business-activity-slows-prices-stable\/","title":{"rendered":"US Business Activity Slows Down, But Prices Stay (Relatively) Calm"},"content":{"rendered":"

US Business Activity Slows Down, But Prices Stay (Relatively) Calm<\/h1>\n\n\n\n

Intermediate | October 2, 2025<\/h4>\n\n\n\n

\u2728 \ud63c\uc790\uc11c \uae30\uc0ac\ub97c \uc18c\ub9ac \ub0b4\uc5b4 \uc77d\uac70\ub098 \ud29c\ud130\ub97c \ub530\ub77c \uac01 \ub2e8\ub77d\uc744 \ubc18\ubcf5\ud574\uc11c \uc77d\uc73c\uc138\uc694. \ub808\ubca8...<\/em><\/p>\n\n\n\n

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A Second Month of Cooling<\/h3>\n\n\n\n

On September 23, 2025, S&P Global released fresh data showing that US business activity slowed for the second month in a row. The flash Composite PMI Output Index dropped to 53.6 from 54.6 in August. A reading above 50 still means growth, but this slip shows the pace of expansion is easing. Both the services and manufacturing sectors reported weaker momentum, with many companies pointing to tariffs as the main driver behind rising costs. This slowdown in US business activity has made many economists cautious about the strength of the recovery. (Reuters<\/a>)<\/p>\n\n\n\n

Rising Costs, But Not Rising Prices<\/h3>\n\n\n\n

Even though costs went up, businesses held back from passing those increases to customers. The index for prices paid rose to 62.6 from 60.8, showing companies are facing higher input costs. Yet the index for prices charged slipped from 58.3 to 56.0. In simple terms, firms are paying more but charging less than they could, because competition is strong and demand feels softer. This means profit margins are shrinking, and businesses are absorbing the impact instead of raising prices for consumers. For now, US business activity shows resilience in holding down price hikes. (Reuters<\/a>)<\/p>\n\n\n\n

What It Means for Inflation and the Fed<\/h3>\n\n\n\n

This situation could actually help keep inflation in check, at least for now. If companies continue to hold off on raising prices, the Federal Reserve will feel less pressure to act aggressively. In fact, the Fed recently cut interest rates by 25 basis points, bringing its target range to 4.00%\u20134.25%. That move suggests policymakers are trying to balance slowing growth with the need to control inflation. The OECD has also warned that the full effects of tariffs may still be coming, as many firms are relying on inventory buffers to soften the blow. Policymakers will keep watching US business activity closely for signs of stress. (Reuters<\/a>)<\/p>\n\n\n\n

Looking Ahead<\/h3>\n\n\n\n

The big question is what happens next. If margins stay squeezed, companies may eventually feel they have no choice but to pass costs along to consumers. That could push inflation higher and test the Federal Reserve\u2019s strategy of carefully timed rate cuts. Consumers, already stretched, would likely feel the impact in their wallets. For now, though, the slowdown seems to be more about growth than runaway prices. The path of US business activity will determine how both companies and consumers adjust in the months ahead.<\/p>\n\n\n\n

\n\n\n\n

Vocabulary<\/h2>\n\n\n\n
    \n
  1. Composite (adj.)<\/strong> \u2013 made of many parts or sectors
    Example:<\/em> The composite PMI mixes manufacturing and services data.<\/li>\n\n\n\n
  2. PMI (noun)<\/strong> \u2013 Purchasing Managers\u2019 Index, a survey-based measure of business activity
    Example:<\/em> A PMI above 50 means expansion.<\/li>\n\n\n\n
  3. Tariff (noun)<\/strong> \u2013 a tax on imports
    Example:<\/em> The new tariff increased the cost of imported steel.<\/li>\n\n\n\n
  4. Input (noun)<\/strong> \u2013 materials or resources used in production
    Example:<\/em> Rising input costs squeezed profits for manufacturers.<\/li>\n\n\n\n
  5. Margin (noun)<\/strong> \u2013 the difference between cost and selling price
    Example:<\/em> Tight margins make it difficult for firms to invest more.<\/li>\n\n\n\n
  6. Absorb (verb)<\/strong> \u2013 to take in or bear the cost
    Example:<\/em> Companies absorb extra costs rather than pass them on.<\/li>\n\n\n\n
  7. Contract (verb)<\/strong> \u2013 to shrink or become smaller
    Example:<\/em> The manufacturing sector contracted slightly this month.<\/li>\n\n\n\n
  8. Buffer (noun)<\/strong> \u2013 something used as a cushion against shocks
    Example:<\/em> Firms used inventory buffers to absorb cost changes.<\/li>\n\n\n\n
  9. Breathing room (noun phrase)<\/strong> \u2013 extra space or flexibility
    Example:<\/em> The Fed has some breathing room before making deeper cuts.<\/li>\n\n\n\n
  10. Squeeze (verb)<\/strong> \u2013 to apply pressure (financially)
    Example:<\/em> Rising costs squeezed smaller companies more than big ones.<\/li>\n<\/ol>\n\n\n\n
    \n\n\n\n

    Discussion Questions (About the Article)<\/h3>\n\n\n\n
      \n
    1. Why did U.S. companies see rising costs but hesitate to raise prices?<\/li>\n\n\n\n
    2. How does a PMI above 50 differ from one below 50?<\/li>\n\n\n\n
    3. What is the risk if firms eventually pass costs to consumers?<\/li>\n\n\n\n
    4. Why might the Fed be cautious about cutting rates too much or too fast?<\/li>\n\n\n\n
    5. Which sectors might feel the pressure first when margins shrink?<\/li>\n<\/ol>\n\n\n\n
      \n\n\n\n

      Discussion Questions (About the Topic)<\/h3>\n\n\n\n
        \n
      1. In your country, when do businesses raise prices\u2014immediately or gradually?<\/li>\n\n\n\n
      2. Do you think companies should always absorb costs or pass them to consumers?<\/li>\n\n\n\n
      3. How much do tariffs impact everyday prices in your daily life?<\/li>\n\n\n\n
      4. What factors make consumers more price-sensitive?<\/li>\n\n\n\n
      5. What other policies (besides rate cuts) could help firms facing cost pressures?<\/li>\n<\/ol>\n\n\n\n
        \n\n\n\n

        Related Idiom<\/h3>\n\n\n\n

        \u201cWalk a tightrope\u201d<\/strong> \u2013 to act carefully between two dangers or extremes.
        Example:<\/em> Companies are walking a tightrope\u2014balancing rising costs with customer expectations.<\/p>\n\n\n\n

        \n\n\n\n

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        \n\n\n\n

        Want to finally Master English but don’t have the time? Mastering English for Busy Professionals<\/strong><\/a> is the course for you! Check it out now!<\/p>\n\n\n\n

        \n\n\n\n

        Follow our YouTube Channel @All_About_English<\/strong><\/a> for more great insights and tips<\/p>\n\n\n\n

        \n\n\n\n

        This article was inspired by: Reuters<\/a><\/p>","protected":false},"excerpt":{"rendered":"

        US Business Activity Slows Down, But Prices Stay (Relatively) Calm Intermediate | October 2, 2025 \u2728 Read the article aloud […]<\/p>\n","protected":false},"author":1,"featured_media":3763,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[24,19,26],"tags":[15,196,30],"class_list":["post-3762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-news","category-usa-news","tag-10-minute-english","tag-english-learning","tag-english-news-for-learning-english"],"yoast_head":"\nUS business activity slows while price hikes remain limited - All About English Mastery<\/title>\n<meta name=\"description\" content=\"US business activity cooled in September as input costs rose\u2014but firms held off raising prices. 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