NEW YORK – “Activity in the broad service sector gained momentum in December, bolstered by improvement in the non-retail services subsector,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday, “However, total retail sales slowed and big-ticket sales weakened compared to November's survey. Shopper traffic flattened at retail establishments. Retail inventories increased more slowly than a month ago. At non-retail services firms, revenues rose sharply in December. Survey participants were upbeat about business prospects for the first half of 2012.”
Overall, the service sector revenues index surged to 22 in December, from 6 in November, while the number of employees index reversed to positive 5 from negative 2, the average wage index soared to 15 from 5, and the expected product demand during the next six months index increased to 19 from 11.
The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.
By sector, the retail area excluding services firms reported the sales revenues index sank to 4 in December from 23 in November, the number of employees index slipped to negative 16 from negative 13, while the average wages index dipped to 2 from 4. The inventories index fell to 12 from 26, while the big-ticket sales index slid to negative 5 from positive 1. The shopper traffic index slumped to negative 2 from positive 23, while expected product demand during the next six months crept to 28 from 27.
For services firms excluding retail, the revenues index was 24 compared to 1 last month, while the number of employees index increased to positive 13 from negative 1, and the average wage index rose to 18 from 5. The expected product demand during the next six months index climbed to 16 from 5.
The current price trend for the two sectors together jumped to 1.44 from 1.24, while slipping to 1.91 from 2.05 for retail alone and growing to 1.23 from 1.09 for services, excluding retail.
The expected price trend index for the two sectors together grew to 1.53 in December from 1.51 in November, while decreasing to 1.45 from 2.17 for retail alone and jumping to 1.60 from 1.34 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.
