While U.S. GDP fell slightly to start the year, other nations’ economies were growing.

“Overall, [it’s] better news than yesterday on price inflation, but core PCE still comes in well above the 2% target.”

In October, the PPI rose 2.4% year-over-year.

The recent survey also predicts that the federal funds rate will reach 3%-3.25% by the end of next year.

After a 0.9% decline in July, production at U.S. factories, mines, and utilities increased 0.8% in August, exceeding expectations.

The lowest annualized inflation since 2022 suggests high interest rates are finally starting to work.

Combined with a second month of expansion among manufacturers, the services data pushed the S&P Global composite purchasing managers index up to a 26-month high.

Elevated interest rates and a strong dollar force other currencies lower and complicate other central banks' plans to bring down borrowing costs.