The core PCE inflation index, the Federal Reserve's preferred measure, rose 0.3% in September, the most since April, pushing the annual rate to 2.7%. Combined with robust consumer spending growth, this uptick in inflation suggests a more cautious path for upcoming rate cuts. September's data showed strong wage support for spending, although inflation-adjusted incomes grew modestly. The figures coincide with steady consumer demand, particularly in services and goods, signaling resilience ahead of the upcoming election.

Supply chains are under stress from geopolitical tensions, labor disruptions and natural disasters, prompting companies to adopt new risk management strategies. Supply chain risk management has become a competitive advantage in the post-pandemic economy, with companies using tools to assess risks and source components locally. Such measures can be costly and complex, but a recent survey shows companies investing in resilience saw 23% revenue growth from 2018 to 2023.

US labor costs increased by 0.8% in the third quarter, marking the slowest rise in compensation in over three years, according to the Labor Department's employment cost index. Total compensation increased 3.9% from a year earlier, also the slowest rate since 2021. Slower wage growth suggests a downward trend in inflation.

Initial jobless claims fell to 216,000 last week, down 12,000 from the prior week, below the median forecast of economists in a Bloomberg survey. Claims reached their lowest point since May.

Trucking companies expect a rebound in freight rates this year, with XPO reporting a 1.9% revenue increase in its North American less-than-truckload business. XPO said it has so far opened 21 of 28 former Yellow facilities it now controls. Werner Enterprises said it has seen contractual rate increases and a reduction in excess capacity.

In response to geopolitical disruptions and shifting trade lanes, procurement teams are encouraged to diversify their carrier partnerships for the 2025 tender season. By spreading risk across multiple carriers, teams can better manage the impacts of sudden route changes and ensure more reliable service to help mitigate risks and build more resilient supply chains.

Generative AI is increasingly being adopted in B2B contexts, with 64% of retailers investing in the technology, according to IDC research. Despite challenges such as IT complexity and talent shortages, AI is helping businesses enhance customer experiences by unifying data and enabling personalized solutions. SAP's Geert Leeman emphasizes the importance of using AI to create customer profiles and streamline processes, ultimately aiming to improve customer retention and business performance.

Employers added 233,000 jobs to private payrolls in October, with private job creation hitting the highest level in more than a year, according to ADP. This figure surpassed the Dow Jones estimate of 113,000 and occurred despite hurricanes in the Southeast. Wages rose 4.6% year over year.

It's no secret that your teams are stressed for many reasons, including a volatile political climate, layoffs and business budget tightening, but Allison McWilliams, with Wake Forest University, writes that leaders should focus on what they can control and lead with kindness, understanding and consistency. "Great leaders provide clear, consistent communication and give people the information they need to be successful," McWilliams notes.

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