N.Y. Fed: April service sector survey shows signs of inflation
Prices received increased in April, to a level not seen in more than six years, while wage growth slowed, according to the Federal Reserve Bank of New York's April Business Leaders Survey, released Tuesday.
“The prices received index moved up three points to 24.8, again reaching its highest level in more than six years, pointing to a continued acceleration in selling prices,” according to the survey.
Service sector activity “grew to a small degree," the release noted. “The survey’s headline business activity index fell seven points to 4.1, pointing to a slower pace of growth than in March,” the report noted.
The business activity index slipped to 4.1 in April from 11.2 in March, the business climate index dropped to 3.5 from 7.7, the number of employees index decreased to 10.1 from 17.9, the wages index slid to 39.2 from 43.1, the prices paid index rose to 50.6 from 49.1, the prices received index climbed to 24.8 from 21.5, and the capital spending index dropped to 12.0 from 17.2.
The future business activity index fell to 29.0 in April from 43.8 in March, the business climate index declined to 19.4 from 28.6, the number of employees index decreased to 23.4 from 29.1, the wages index slid to 42.8 from 49.7, the prices paid index fell to 52.8 from 55.8, the prices received index gained to 27.3 from 25.0, and the capital spending index climbed to 29.5 from 25.0.
Respondents to the Business Leaders Survey, which the Fed calls “a close cousin of our Empire State Manufacturing Survey,” come from New York, northern New Jersey, and southwestern Connecticut.