Service sector activity "continued to be modest overall, except in the retail sub-sector where activity was strong," according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.
Overall, the service sector revenues index rose to 4 from 3, while the number of employees index fell to 12 from 13, the average wage index increased to 24 from 12, and the expected product demand during the next six months index jumped to 36 from 22.
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 soared to positive 30 from negative 9, the number of employees index declined to 6 from 10, while the average wages index soared to 49 from 16. The inventories index rebounded to positive 2 from negative 10, while the big-ticket sales index surged to 35 from 13. The shopper traffic index increased to positive 29 from negative 9, while expected product demand during the next six months grew to 72 from 43.
For services firms excluding retail, the revenues index was negative 1 compared with positive 5 last month, while the number of employees index climbed to 16 from 14, and the average wage index rose to 30 from 19. The expected product demand during the next six months index climbed to 30 from 22.
The current price trend for the two sectors together grew t0 1.31 from 1.14, while gaining to 1.51 from 1.22 for retail alone and rising to 1.27 from 1.12 for services, excluding retail.
The expected price trend index for the two sectors together increased to 1.73 in December from 1.60 in November, while slipping to 1.98 from 2.08 for retail alone and rising to 1.69 from 1.52 from 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.
