Service sector activity "softened in July," according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.
Overall, the service sector revenues index dropped to negative 6 in July, from positive 12 in June, while the number of employees index increased to 2 from 1, the average wage index slipped to 7 from 11, and the expected product demand during the next six months index fell to 11 from 21.
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 slumped to negative 22 from positive 1 in June, the number of employees index fell to negative 14 from negative 2, while the average wages index slipped to 1 from 4. The inventories index improved to negative 12 from negative 22, while the big-ticket sales index slid to negative 5 from negative 4. The shopper traffic index dropped to negative 16 from positive 6, while expected product demand during the next six months fell to negative 29 from positive 11.
For services firms excluding retail, the revenues index was negative 3 compared with positive 16 last month, while the number of employees index rose to 4 from 1, and the average wage index dipped to 9 from 13. The expected product demand during the next six months index declined to 17 from 23.
The current price trend for the two sectors together rose to 1.21 from 0.99, while gaining to1.00 from 0.64 for retail alone and growing to 1.22 from 1.09 for services, excluding retail.
The expected price trend index for the two sectors together rose to 1.63 in July from 1.48 in June, while increasing to 1.91 from 1.68 for retail alone and rising to 1.58 from 1.48 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.
