Service sector activity "improved in May," according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.
Overall, the service sector revenues index soared to 13 from 2, while the number of employees index increased to 11 from 9, the average wage index fell to 11 from 24, and the expected product demand during the next six months index crept to 20 from 18.
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 12 from positive 17, the number of employees index grew to 8 from 5, while the average wages index plunged to 5 from 44. The inventories index declined to negative 14 from negative 5, while the big-ticket sales index reversed to negative 13 from positive 18. The shopper traffic index decreased to negative 23 from positive 18, while expected product demand during the next six months slumped to negative 13 from positive 23.
For services firms excluding retail, the revenues index was positive 17 compared with negative 1 last month, while the number of employees index increased to 12 from 9, and the average wage index slid to 12 from 21. The expected product demand during the next six months index rose to 25 from 17.
The current price trend for the two sectors together dipped to 1.37 from 1.38, while growing to 1.62 from 1.54 for retail alone and slipping to 1.33 from 1.36 for services, excluding retail.
The expected price trend index for the two sectors together rose to 1.77 in May from 1.69 in April, while gaining to 1.82 from 1.69 for retail alone and growing to 1.77 from 1.69 to 1.69 from 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.
