US service sector expands at record pace in October

Nov 2, 2021, 7:18 PM | Updated: Nov 3, 2021, 8:01 am
FILE - People shop at a Johnny Was clothing store in the luxury wing at the American Dream shopping...

FILE - People shop at a Johnny Was clothing store in the luxury wing at the American Dream shopping mall in East Rutherford, N.J. on Friday, Sept. 17, 2021. The U.S. services sector, where most Americans work, grew again in September even as supply chain troubles persisted. The Institute for Supply Management reported Tuesday, Oct. 5, 2021 that its monthly survey of service industries rose to a reading of 61.9, following August’s reading of 61.7. (AP Photo/Ted Shaffrey, file)

(AP Photo/Ted Shaffrey, file)

SILVER SPRING, Md. (AP) — The rate of expansion in the U.S. services sector, where most Americans work, hit a record high in October as demand remained strong even as supply chain problems persisted.

The Institute for Supply Management reported Wednesday that its monthly survey of service industries — which includes restaurants and bars, trucking companies, hotels and many other businesses — jumped to a reading of 66.7 from September’s reading of 61.9.

Although business activity, new orders, supplier deliveries and backlog of orders all surpassed previous records, sticky issues that have plagued almost every kind of economic activity since infections began to ease in the U.S. continued: labor shortages, supply chain bottlenecks and higher prices.

“The broad picture painted by this report is that the economy is overheating,” said Stephen Stanley, chief economist for Amherst Pierpont Securities. “Demand is overwhelmingly strong at the same time that supply is constrained. Still, I am not sure that even a fully-functioning supply side, with more labor and a resolution of snags would be able to handle the pace of demand right now.”

The reading for employment grew for the fourth straight month in October, but dipped slightly from September, creeping closer to contraction at 51.6. Respondents to the survey, which include purchasing and supply executives, said they are still having trouble filling positions.

The labor shortages, along with the difficulties in getting parts and products due to supply chain issues, led to a record reading of 67.3 in the backlog of orders category. Businesses have also had trouble stocking up on goods, with the inventories index declining for the fifth straight month, to 42.2.

All of these problems, along with strong demand, have led to higher prices for just about everything. The prices index rose 5.4 percentage points from September, registering 82.9 in October. That’s the highest reading since 2005, when it hit an all-time high of 83.5.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Ukrainian police officers collect fragments from a crater to determine the type of ammunition after...
Associated Press

Ukrainian official: Russian strike kills 23, wounds 28

KYIV, Ukraine (AP) — A Ukrainian official says a Russian strike on the city of Zaporizhzhia has killed at least 23 people and wounded 28. Zaporizhzhia Regional Governor Oleksandr Starukh made the announcement in an online statement Friday. He said Russian forces targeted a humanitarian convoy heading to Russian-occupied territory. He posted images of burned […]
24 hours ago
Olley's Fish Experience shop owner Harry Niazi speaks to The Associated Press in his shop in London...
Associated Press

‘Big impact’: UK economic chaos, pound plunge hit businesses

LONDON (AP) — Like many small business owners in Britain, Harry Niazi hoped for government help to keep his south London fish and chip shop going in the face of rocketing energy bills and soaring inflation. But an economic stimulus plan announced last week by Prime Minister Liz Truss’ new government brought no relief — […]
24 hours ago
FILE - Japan's Digital Agency Minister Taro Kono is seen on Sept. 20, 2021. The Digital Agency was ...
Associated Press

Digital minister aims to wrest Japan out of analog doldrums

TOKYO (AP) — The politician tapped to help Japan keep pace with the digital age has his work cut out for him. After all, the nation known for Nintendo games, Lexus sportscars and other gadgetry galore also loves the fax machine and the traditional “hanko” seals that work as analog signatures. But Digital Minister Taro […]
24 hours ago
FILE - A sign marks the entrance of the Micron Technology automotive chip manufacturing plant on Fe...
Associated Press

Japan to pay up to $320M for US company’s chip production

TOKYO (AP) — Japan is providing a major U.S. chipmaker a subsidy of up to 46.6 billion yen ($322 million) to support its plan to produce advanced memory chips at a Hiroshima factory, the Japanese trade minister said Friday. The announcement to subsidize Micron Technology comes on the heels of U.S. Vice President Kamala Harris’ […]
24 hours ago
A man works at a manufacturer of Integrated Chip encapsulation in Nantong in eastern China's Jiangs...
Associated Press

China manufacturing weak, adding to economy pressure

BEIJING (AP) — Growth in Chinese factory activity was weak in September, export orders fell and employers cut jobs, two surveys showed Friday, adding to pressure on lackluster economic growth. A monthly purchasing managers’ index released by business news magazine Caixin fell to 48.1 from August’s 49.5 on a 100-point scale on which readings below […]
24 hours ago
Construction workers prepare a scaffolding at a construction site in Hajji Ali in Mumbai, India, Th...
Associated Press

India raises interest rate to 5.90% to tame inflation

NEW DELHI (AP) — India’s central bank on Friday raised its key interest rate by 50 basis points to 5.90% in its fourth hike this year and said developing economies were facing challenges of slowing growth, elevated food and energy prices, debt distress and currency depreciation. Reserve Bank of India Governor Shaktikanta Das projected inflation […]
24 hours ago

Sponsored Articles

Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.
...

Anacortes – A Must Visit Summertime Destination

While Anacortes is certainly on the way to the San Juan Islands (SJI), it is not just a destination to get to the ferry… Anacortes is a destination in and of itself!
...

Ready for your 2022 Alaskan Adventure with Celebrity Cruises?

Celebrity Cruises SPONSORED — A round-trip Alaska cruise from Seattle is an amazing treat for you and a loved one. Not only are you able to see and explore some of the most incredible and visually appealing natural sights on the planet, but you’re also able to relax and re-energize while aboard a luxury cruise […]
US service sector expands at record pace in October