US service sector expands at record pace in October

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 jumped to a reading of 66.7. That follows September’s reading of 61.9.

Readings for the categories of business activity, new orders, supplier deliveries and backlog of orders all surpassed previous records.

All 18 services industry categories reported growth in October, led again by retail trade.

Any reading above 50 indicates growth in service industries. The services index has shown growth for the past 17 months after two months of contraction in April and May of 2020 when the coronavirus triggered widespread shutdowns and millions of job losses.

By MATT OTT AP Business Writer

All contents © copyright 2021 Associated Press. All rights reserved

Categories: Business, Jobs & Economy, US & World News