Service sector activity "improved overall in May," according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.
Overall, the service sector revenues index surged to positive 11 in May, from negative 9 in April, while the number of employees index narrowed to negative 5 from negative 10, the average wage index climbed to 18 from 11, and the expected product demand during the next six months index grew to 17 from 11.
The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.
By sector, the retail area excluding services firms reported the sales revenues index climbed to negative 1 from negative 23 in April, the number of employees index narrowed to negative 10 from negative 19, while the average wages index jumped to 26 from 1. The inventories index decreased to negative 20 from positive 4, while the big-ticket sales index narrowed to negative 10 from negative 12. The shopper traffic index climbed to positive 12 from negative 9, while expected product demand during the next six months grew to 25 from 7.
For services firms excluding retail, the revenues index was positive 18 compared with negative 6 last month, while the number of employees index narrowed to negative 1 from negative 12, and the average wage index gained to 18 from 12. The expected product demand during the next six months index rose to 17 from 9.
The current price trend for the two sectors together gained to 1.23 from 1.04, while slipping to 1.39 from 1.59 for retail alone and climbing to 1.36 from 0.94 for services, excluding retail.
The expected price trend index for the two sectors together rose to 1.53 in May from 1.32 in April, while decreasing to 1.21 from 1.77 for retail alone and growing to 1.55 from 1.26 for services, excluding retail.
All firms surveyed are located within the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia.
