Service sector conditions were mixed in September, the Federal Reserve Bank of Richmond reported on Tuesday.
The revenues index dropped to 18 from 31 in August, suggesting softening growth, but the Richmond Fed said survey participants reported growing demand and improving local business conditions. Firms remained optimistic, expecting to see further growth in the coming months, the Fed said.
“Service sector employment growth rebounded in September, after falling in August,” the Fed said. “Firms also reported higher wages and longer workweeks but were still unable to find enough workers with the skills they needed, as the availability of skills index dropped to a record low of negative 15. Firms expect this struggle to continue in the coming months.”
The current services expenditures fell to 12 from 18, capital expenditures rose to 21 from 18 while the number of employees index rose to 22 from 10, the available skills widened to negative 15 from negative 11, the wages index rose to 30 from 26 and the demand index rose to 30 from 28.
The expected service sector revenues index increased to 56 from 44, services expenditures fell to 19 from 23, capital expenditures rose to 31 from 26, while the number of employees index soared to 41 from 29, the available skills widened to negative 9 from negative 2, the wages index rose to 42 from 38 and the demand index rose to 51 from 42.
The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.
The current prices paid trend rose to 2.69 from 2.03 while prices received rose to 2.42 from 1.68.
The expected prices paid trend increased to 2.89 from 2.55 while while prices received rose to 2.55 from 2.19.
All companies surveyed were located within the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia.
