Prices received increased in July, as prices paid retreated from a multi-year high, while employment growth slowed, according to the Federal Reserve Bank of New York's May Business Leaders Survey, released Tuesday.
“The prices paid index, which had climbed to a multi-year high in June, edged back four points to 58.6 in July, indicating that input prices continued to rise at a fairly brisk pace,” according to the survey. “The prices received index rose marginally to 24.6, a level consistent with a moderate escalation in selling prices.”
Service sector activity growth “moderated somewhat but was still fairly brisk," the release noted.
The business activity index slipped to 14.8 in July from 21.4 in June, the business climate index dropped to 13.3 from 21.0, the number of employees index decreased to 12.9 from 17.7, the wages index slid to 39.1 from 41.1, the prices paid index declined to 58.6 from 62.1, the prices received index climbed to 24.6 from 22.3, and the capital spending index dipped to 12.4 from 12.7.
The future business activity index fell to 32.4 in July from 36.6 in June, the business climate index declined to 13.9 from 20.8, the number of employees index decreased to 22.5 from 26.5, the wages index slid to 47.1 from 51.0, the prices paid index fell to 54.0 from 57.5, the prices received index gained to 32.8 from 32.0, and the capital spending index slipped to 19.0 from 22.6.
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.