NEW YORK – “A stronger performance at non-retail services firms pushed up overall service sector activity this month,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released today, “However, weakness persisted in the retail sector, with overall softness in retail sales and another steep drop in big-ticket sales. In addition, shopper traffic withered. However, inventories edged up only slightly. Looking ahead six months, retail merchants remained optimistic about consumer demand, although their exuberance of a month ago waned. At services firms, survey respondents also remained upbeat, but less enthusiastic than in October.”
The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.
Overall, the service sector revenues index reversed to positive 7 in November, from negative 7 in October, while the number of employees index gained to positive 1 from negative 7, the average wage index rose dipped to 7 from 8, and the expected product demand during the next six months index slipped to 24 from 32.
By sector, the retail area excluding services firms reported the sales revenues index dropped to negative 16 in November from negative 7 in October, the number of employees index dipped to negative 16 from negative 15, while the average wages index remained at zero. The inventories index slipped to 4 from 10, while the big-ticket sales index remained negative 25. The shopper traffic index dropped to negative 19 from negative 1, while expected product demand during the next six months slumped to 15 from 44.
For services firms excluding retail, the revenues index was positive 15, compared to negative 5 last month, while the number of employees index rose to positive 2 from negative 5, and the average wage index inched up to 10 from 9. The expected product demand during the next six months index slid to 24 from 32.
The current price trend for the two sectors together grew to 0.80 from 0.56, while rising to 1.27 from 0.98 for retail alone and growing to 0.67 from 0.41 for services, excluding retail.
The expected price trend index for the two sectors together rose to 1.30 in November from 1.03 in October, while decreasing to 1.92 from 1.96 for retail alone and gaining to 1.00 from 0.78 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.
