US business activity slows further in September amid weak demand and tariff pressures

 

Business activity in the United States slowed again in September, highlighting growing concerns that the world’s largest economy is losing steam. Surveys across both manufacturing and services showed weaker orders, declining new contracts, and cautious corporate sentiment. The slowdown comes at a time when higher borrowing costs and persistent inflationary pressures have already started to weigh heavily on household budgets. With consumer spending—the backbone of the U.S. economy—showing early signs of fatigue, analysts are warning of a more challenging environment heading into the final
.quarter of the year.

One of the key factors driving the slowdown has been the impact of new tariff measures introduced earlier this summer. Several industries, particularly in manufacturing and agriculture, have reported disruptions to supply chains and rising input costs. Exporters are struggling to remain competitive as trade barriers reduce demand for American goods overseas. At the same time, companies dependent on imports are facing higher prices for raw materials, squeezing profit margins.

Despite these headwinds, the U.S. economy remains more resilient than many of its peers. Employment levels, while cooling, are still relatively strong, and certain service industries such as technology, healthcare, and travel continue to post solid gains. However, the overall picture is one of slowing momentum. The Federal Reserve, which has maintained a tight monetary stance, now faces the difficult task of deciding whether to ease conditions to support growth or hold firm to fully suppress inflation.

Markets have responded nervously to the data. Equity indexes slipped on fears of weaker earnings, while government bond yields fluctuated as investors reassessed the timing of potential interest rate cuts. Businesses themselves are increasingly cautious, delaying new projects and scaling back hiring plans. If these trends persist, economists believe the U.S. could face a sharper deceleration in 2026, though a recession is not yet considered inevitable.

Ultimately, the September slowdown highlights the delicate balance confronting the U.S. economy. Policymakers, businesses, and households alike are navigating an environment marked by uncertainty: inflation has not fully retreated, interest rates remain high, and trade tensions show no signs of easing. Whether America can maintain its relative resilience will depend on the decisions made in Washington and the ability of companies to adapt to shifting global conditions.

For professional inquiries and collaborations, you can connect with the economic writer Abdalla Hilal via LinkedIn: linkedin.com/in/abdalla-hilal-6356431a5.