Business activity surged in October
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.