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The ISM gauge of prices paid for manufacturing inputs climbed another 7.8 points to 78.3, remaining at the highest since mid-2022.

The rise in confidence comes as recent data has indicated the labor market is showing some signs of stabilization and inflation has been relatively tame.

The strength in demand reflected a decline in a measure of customer inventories, which contracted by the most since mid-2022. Lean customer stockpiles could boost factory orders and production.

The weak ADP report risks heightening concerns of a more rapid deterioration in the labor market ahead of the Federal Reserve’s final policy meeting of the year next week.

Initial claims decreased by 6,000 to 216,000 in the week ended Nov. 22. The median forecast in a Bloomberg survey of economists called for 225,000 applications.

While helping to temper concerns of a faster deterioration in the job market, the modest payrolls increase last month is consistent with a general softening in labor demand.

GDP is already poised to be at least one percentage point lower in the fourth quarter due to the government shutdown, according to the CBO report released Oct. 29.

The Conference Board’s gauge decreased 1 point to 94.6, the lowest since April, data out Oct. 28 showed. The median estimate in a Bloomberg survey of economists called for a reading of 93.4.

Private sector payrolls decreased by 32,000 after a revised 3,000 decline a month earlier, according to ADP Research data released Oct. 1.

U.S. customs duties climbed to a record in May, helping shrink the budget deficit for the month, while doubts remain about the persistence of the inflows.