US business activity increased in October to a three-month high, with the S&P Global Composite PMI Output Index reading 54.8, up from 53.9 the previous month. The improvement was driven by the services sector, which increased from 54.2 to 55.2. Manufacturing edged upward from 52 to 52.2, with the manufacturing output index rising from 52.4 to 52.8. However, business sentiment has declined, with companies expressing concerns about trade policies and decreasing export orders. Companies also reported holding onto unsold goods and light hiring.

A widening economic divide is impacting US businesses. Companies that serve lower-income consumers are facing declining sales and profits, while affluent households continue to sustain overall spending. Lower-income consumers are delaying purchases, seeking discounts and struggling with affordability as inflation remains elevated. Some companies are adapting products for both ends of the market, while firms reliant solely on budget customers are experiencing financial strain and workforce reductions.

Economists estimate that the ongoing US government shutdown is reducing annualized GDP growth by 0.1 to 0.2 percentage points each week, primarily driven by declines in consumer spending and federal worker productivity. While most of the lost output is expected to be recovered once the government reopens, the longer the shutdown lasts, the more permanent the economic losses may become, particularly for affected households.

Free trade agreements offer significant opportunities for companies to achieve duty savings and enhance supply chain resilience. While FTAs can lower or eliminate tariffs and provide more stable sourcing channels, many organizations have hesitated to leverage them due to perceived complexity in compliance and documentation. However, recent advancements in supply chain management software have made qualifying for and managing FTAs easier. Companies embracing these tools can transform trade compliance operations and reduce costs by capitalizing on available FTA benefits.

Industrial ergonomics is experiencing rapid technological innovation, particularly in response to the challenges posed by the expanding workforce in large distribution centers. Kristianne Egbert, senior corporate ergonomist at Briotix Health, highlights how new tools like video capture technology provide deeper insights into ergonomic risks, and she also emphasizes the value of involving frontline employees in solution development, which increases the effectiveness and longevity of ergonomic improvements.

LinkedIn's "Buyability" framework, introduced at the ANA Masters of Marketing, emphasizes the importance of emotional connections in B2B marketing. Mimi Turner and Jann Schwarz of LinkedIn highlight that trust, relatability and peer validation are crucial for becoming the safe choice for buyers. The framework encourages marketers to build trust and fame within buying groups, moving beyond traditional metrics like clicks and leads.

B2B marketers are prioritizing content relevance and strategy over personalization to drive performance. While the Content Marketing Institute reports 65% of marketers cite content relevance as a key factor for success, McKinsey finds that just 14% are using AI for personalization, despite its potential to boost return on investment by up to 30%. Marketers face challenges such as limited resources and difficulty measuring impact, leading to underinvestment, per CMI.

The US has collected an estimated $30 billion per month from tariffs, and companies are reporting significant tariff expenses, with many moving to offset costs through operational improvements and supplier negotiations. Although some domestic manufacturers have benefited as imports have become more expensive, smaller businesses are reaching their limits and have increased prices substantially. Companies have passed around 37% of tariff costs to consumers, 9% to suppliers and absorbed 51%, according to Goldman Sachs.

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