WASHINGTON, (Reuters) – A new measure of U.S. service industry activity surprisedly rose in November. Businesses increased hiring but there were no signs that the supply constraint was easing. Prices remained high.

According to the Institute for Supply Management, Friday’s non-manufacturing index rose to 69.1 from 66.7 in October. This is the highest reading since 1997 when the series began. A reading of 50 or more indicates that the service sector is growing, accounting for nearly two-thirds U.S. economic activities.

Reuters polled economists to forecast that the index will fall to 65. This survey combined data from the consumer market, labor market and manufacturing to paint a positive picture of the economy. However, the Omicron version of COVID-19 poses a threat to the outlook.

ISM’s index of employment in the services sector grew to 56.5, a seven month high, from 51.6 in Oct. It offered some hope that the labor crunch caused by the Pandemic could soon be overtaken. At the end September, there were 10.4million job opportunities.

The services industry made great progress last month with the rising number of jobs.

In general, supply restrictions remained rigid. According to the survey, 75.6 was the highest level of supplier deliveries. A reading above 50% indicates slower deliveries.

Some of the unexpected rise in services index was due to slower delivery times. They’re usually linked to a strong economy, higher customer demand and a positive contribution for the ISM non manufacturing index.

This is a case where slower supplier deliveries indicate that there are constant pandemic-related shortages.

From 82.9 October, the survey measured prices paid to services companies at 82.3. Jerome Powell (Federal Reserve Chair) told lawmakers Tuesday that the “risk of higher inflation had increased.”

Last month, a record number of services business customers placed new orders at a total of 69.7.