Service sector activity "strengthened further" in October, according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.
Overall, the service sector revenues index grew to 27 from 21, while the number of employees index increased to 14 from 13, the average wage index gained to 18 from 13, and the expected product demand during the next six months index rose to 27 from 22.
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 dropped to 21 from 37, the number of employees index fell to 14 from 21, while the average wages index climbed to 32 from 20. The inventories index plunged to 1 from 32, while the big-ticket sales index dropped to 7 from 19. The shopper traffic index decreased to 24 from 43, while expected product demand during the next six months slid to 11 from 30.
For services firms excluding retail, the revenues index was 28 compared with 18 last month, while the number of employees index increased to 15 from 12, and the average wage index grew to 16 from 12. The expected product demand during the next six months index rose to 30 from 21.
The current price trend for the two sectors together grew to 1.61 from 1.58, while rising to 2.05 from 1.98 for retail alone and climbing to 1.52 from 1.50 for services, excluding retail.
The expected price trend index for the two sectors together fell to 1.82 in October from 1.89 in September, while dropping to 1.93 from 1.96 for retail alone and slipping to 1.80 from 1.88 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.
