The ISM Services Index exceeded economists’ expectations by ticking higher to a reading of 61.9 in September. This reading is higher than any of the pre-pandemic readings, as demand remains robust despite headwinds from the COVID-19 Delta variant. However, persistent supply/demand imbalances caused inventories to shrink for the fourth straight month. One respondent concisely sums up the situation by stating: “Burning through inventories and unable to replace.”
