US Service Sector Index Hits Record High in October; Shortages Worsening: ISM Survey

US Service Sector Index Hits Record High in October; Shortages Worsening: ISM Survey
Customers drink and dine outdoors at the restaurant "Martha" in Philadelphia, Pa., on Aug. 7, 2021. Hannah Beier/Reuters
Reuters
Updated:

WASHINGTON—A measure of U.S. services industry activity surged to a record high in October likely as declining COVID-19 cases boosted demand, but businesses remained burdened by snarled supply chains and the resulting exorbitant prices.

The Institute for Supply Management said on Wednesday its non-manufacturing activity index vaulted to a reading of 66.7 last month. That was the highest since the series started in 1997 and followed a 61.9 reading in September. A reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of U.S. economic activity.