US Business Activity Surges, Fueling Inflation Concerns

US business activity unexpectedly climbed this month to nearly a one-year high, bolstered by stronger services and manufacturing that threatens to reignite inflationary pressures. The S&P Global flash April composite purchasing managers index rose 1.2 points to 53.5 - the highest since May - the group reported Friday. Firms saw new orders jump to the highest rate in 11 months, especially in the service sector. That allowed businesses to pass on higher costs to customers, resulting in the fastest jump in output prices in seven months. An uptick in inflation would reverse months of progress, even though price growth is still too fast.