U.S. service businesses grow at slowest pace in 16 months during omicron wave, ISM finds
The numbers: A barometer of U.S. business activity at service sector companies such as restaurants and retailers slid 2.4 points in January to a 11-month low of 59.9%, ISM said Thursday, during a record coronavirus outbreak that sapped the economy.
Big picture: Businesses big and small, in manufacturing and services, all took a hit last month as the contagious omicron strain of the coronavirus raced across the country. Millions of people called in sick. Key details: New orders and business production expanded at a slower but still very strong pace in January.
“Labor shortages are causing issues. We could do much more business if we had more people and access to more products,” said an executive at a wholesaler.
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