Service sector survey from the Institute for Supply Management
- Prior was 61.9
- Employment 51.6 vs 53.0 prior
- New orders 69.7 vs 63.5 prior - record high
- Prices paid 82.9 vs 77.5 prior - highest since 2005
- Business activity 69.8 vs 62.3 prior
- Backlog of orders 67.3 vs 61.9 prior
- New export orders 62.3 vs 59.5 prior
- Imports 53.3 vs 47.7 prior
- Inventories 37.3 vs 46.1 prior
This is significantly stronger than expected and points to a sharp acceleration in service sector activity.
Comments in the report:
- "Manufacturers are failing to keep up with orders, and backlogs continue to grow. We've seen proposed pricing increases of more than 20 percent in areas of equipment manufacturing. This is extremely concerning." [Accommodation & Food Services]
- "Container delays are causing serious implications for our supply chain." [Agriculture, Forestry, Fishing & Hunting]
- "Supply chain disruptions continue to roil new residential construction. Material and skilled labor shortages are lengthening cycle times and forcing substitutions." [Construction]
- "Supply chain backorders. We have to forecast six months out for basic supplies and one year for larger international equipment orders. Ivy [League] or elite higher education institutions will fare better than smaller schools, as applicants find alternative sources of education." [Educational Services]
- "Gross revenue continues to be strong due to high patient volume and inpatient census. At the same time, staffing continues to be a challenge and is driving significant cost overruns. To ensure we have adequate staff to care for increased patient demand, we are reliant on higher levels of temporary staff and incentivized staffing programs." [Health Care & Social Assistance]
- "Everything - from sales demand to orders to manufacturers, domestic and international - is ramping up. The international freight crisis is a critical problem, from capacity to transit times with port delays and costs now reaching three times pre-pandemic levels. Fourth-quarter holiday peak sales are at risk for delayed supply. Labor is still an issue, as it's hard to find and get people who want to work, especially in services, trucking and warehouse fulfillment. Profitability outlook is down, thanks to rising costs, lower sales and reduced on-time supply." [Information]
- "While new opportunities continue to present themselves, we are turning work away due to delayed shipments from suppliers and the general lack of new workers." [Management of Companies & Support Services]
- "Positive indications that have been building in the last couple of months are continuing into the beginning of this quarter." [Professional, Scientific & Technical Services]
- "Deliveries are significantly delayed. Metals continue to be volatile." [Public Administration]
- "Construction remains quite strong, although material supply issues persist." [Real Estate, Rental & Leasing]
- "In general, we still have very strong business activity throughout our business channels. This is despite a very challenging business environment of increasing costs, a very difficult employee retention and hiring environment, and massive logistical backlogs. These issues have forced us to lower our top-line sales forecast slightly, due to a lack of supply and throughput challenges. Where possible, we are looking for substitute products to sell. We are still projecting to be well above last year for the month." [Wholesale Trade]
