U.S. services sector index jumps to record high; private payrolls beat expectations

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Customers drink and dine inside the restaurant “Martha” after showing proof of their coronavirus disease (COVID-19) vaccinations before entering, in Philadelphia, Pennsylvania, U.S., August 7, 2021. REUTERS/Hannah Beier

  • Services sector activity index at record high in October
  • Private payrolls increase 571,000
  • Leisure/hospitality lead broad-based job gains

WASHINGTON, Nov 3 (Reuters) – A measure of U.S. services industry activity surged to a record high in October likely as declining COVID-19 cases boosted demand, but businesses remained burdened by snarled supply chains and the resulting exorbitant prices.

The significantly improved public health picture appears to be lifting the labor market, with other data on Wednesday showing an acceleration in private payrolls growth last month. The reports suggested the economy was regaining momentum early in the fourth quarter after being restrained by the Delta variant of the coronavirus and shortages last quarter.

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