Service Sector Activity Gauge Hits Record High, Price Index Surges: ISM Report

A measure of U.S. service sector activity surged to a record high in July while an index that reflects prices paid by service industry businesses accelerated sharply, marking another milestone on the path to economic recovery while reinforcing concerns about inflation.

The Institute for Supply Management (ISM) said on Aug. 4 that its non-manufacturing activity index climbed to 64.1 last month—the highest reading in the history of the series—from 60.1 in June.