Nov 4, 2021 - Economy

Business activity surged in October

Data: Institute for Supply Management; Chart: Axios Visuals

The Delta variant’s impact on the economy is receding into the past — business activity surged in October, per a closely watched index.

Driving the news: The ISM Services PMI, an index that measures all nonmanufacturing activity, jumped by a record 4.8 points to a reading of 66.7 (also an all-time record high).

The big picture: “The surge in the index sends a positive signal about the post-Delta economy, with the business activity and new orders components soaring,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in a research note.

  • Yes, but: Supplier delivery times were slower, prices paid were higher, and the order backlog was larger — all indicating the persistence of supply chain problems, he added.
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