“The slight uptick in the rate of expansion in the month of September continued the current period of strong growth for the services sector,” said Anthony Nieves, chair of the ISM services survey panel. “However, ongoing challenges with labor resources, logistics, and materials are affecting the continuity of supply.”
As demand has outpaced supply, businesses have had to dip into inventories, which contracted for the fourth straight month. Order backlogs also increased at a faster pace and prices for nearly everything continue to climb.
On Friday, the ISM said its survey of manufacturing industries accelerated last month to the highest level since May, despite global supply chain disruptions.