N.Y. Fed: Oct. service sector activity up modestly, prices soar
New York service sector activity “grew modestly” in October, according to the Federal Reserve Bank of New York's Business Leaders Survey, released Tuesday.
“Price increases picked up noticeably this month: the prices paid index jumped eleven points to 61.4 and the prices received index surged eight points to 28.1, indicating widespread input and selling price increases,” the Fed said. “Both price indexes were at or near multiyear highs.”
The business activity index dropped to 9.4 in October from 22.5 in September, the business climate index slipped to 22.2 from 23.2, the number of employees index increased to 14.2 from 11.9, the wages index fell to 40.0 from 43.3, the prices paid index surged to 61.4 from 50.0, the prices received index jumped to 28.1 from 20.1, and the capital spending index declined to 15.3 from 21.9.
The future business activity index rose to 32.7 in October from 28.1 in September, the business climate index climbed to 13.2 from 10.7, the number of employees index decreased to 23.9 from 27.9, the wages index grew to 56.4 from 47.7, the prices paid index climbed to 64.9 from 57.5, the prices received index gained to 37.0 from 31.5, and the capital spending index rose to 30.7 from 24.8.
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.