NEW YORK – “Fifth District service sector activity improved in April,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released today, “Growth in retail sales picked up while retail inventories continued to decline. Although big-ticket sales slumped, shopper traffic rose this month. Revenue growth also returned at non-retail services firms. Price change in the broad service sector ticked up slightly.”
The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.
Overall, the service sector revenues index increased to 9 in April, from zero in March, while the number of employees index gained to positive 8 from negative 3, the average wage index slid to 6 from 9, and the expected product demand during the next six months index surged to 29 from 19.
By sector, the retail area excluding services firms reported the sales revenues index surged to 15 in April from 8 in March, the number of employees index remained negative 8, while the average wages index decreased to 4 from 11. The inventories index inched up to negative 24 from negative 25, while the big-ticket sales index slumped to negative 23 from negative 9. The shopper traffic index reversed to positive 13 from negative 13, while expected product demand during the next six months fell to 22 from 27.
For services firms excluding retail, the revenues index was positive 8, compared to negative 3 last month, while the number of employees index gained to 9 from zero, and the average wage index decreased to 7 from 8 the prior month. The expected product demand during the next six months index jumped to 32 from 18.
The current price trend for the two sectors together rose to 0.58 from 0.30, while sliding to 0.81 from 1.07 for retail alone and growing to 0.41 from 0.02 for services, excluding retail.
The expected price trend index for the two sectors together grew to 1.07 in April from 0.98 in March, while decreasing to 1.67 from 1.93 for retail alone and growing to 0.76 from 0.64 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.
