Service Industries Reach Highest Point In A Decade Post Storms
Service-related industries grew in September at their fastest pace in 12 years, according to the latest analysis from Tempe-based Institute for Supply Management.
The analysis said the sector is growing because of the country’s two recent hurricanes, not despite them.
Anthony Nieves is Chair for ISM’s report on business. He said the September report on service industries is the highest he has seen since August of 2005, and that the need to repair damage left by hurricanes Harvey and Irma are the reason.
“Insurance carriers may bear the brunt of this, but when you look at it, it’s still promoting sales and it is still increasing revenues and helping economic conditions,” Nieves said.
A similar uptick in services happened after hurricane Katrina in 2005, the last time the sector moved this quickly.
Nieves said these kinds of upticks are notable. The surge in demand also helps to explain jump in prices for supplies during the last month.
He said while storm damage hits regionally, the economic impact from them is national.