Service sector activity in the Federal Reserve Bank of New York region grew at a solid clip in May, according to firms responding to the Fed's Business Leaders Survey.
The business activity index rose 11 points to 14.9, pointing to a stronger pace of growth than in April, the Fed said.
The business climate index increased eight points to 11.9, a sign that firms regard the business climate as better than normal.
The employment index edged up two points to 12.4, and the wages index rose five points to 44.1, indicating faster growth in employment and wages this month.
The prices paid index was little changed at 52.1, suggesting ongoing input price increases while the selling price index fell two points to 22.8.
After sliding sharply in April, indexes assessing the six-month outlook suggested firms were more optimistic about future conditions than they were in April. The index for future business activity rose nine points to 37.5. The index for future business climate, at 19.4, was unchanged. Indexes for future wages and prices moved higher, and the index for planned capital spending edged down to 27.5, the Fed said.