NEW YORK – “Activity in the Fifth District service sector was mixed in May,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released today, “Retail sales flattened, even though big-ticket sales declined more slowly than a month ago and retail inventories fell. Shopper traffic also tapered off. In contrast, revenues picked up at non-retail services firms.”
The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.
Overall, the service sector revenues index dipped to 8 in May, from 9 in April, while the number of employees index gained to 10 from 8, the average wage index rose to 8 from 6, and the expected product demand during the next six months index slipped to 26 from 29.
By sector, the retail area excluding services firms reported the sales revenues index slumped to zero in May from 15 in April, the number of employees index remained negative 8, while the average wages index increased to 11 from 4. The inventories index dropped to negative 34 from negative 24, while the big-ticket sales index narrowed to negative 17 from negative 23. The shopper traffic index reversed to negative 1 from positive 13, while expected product demand during the next six months fell to 12 from 22.
For services firms excluding retail, the revenues index was 11, compared to 8 last month, while the number of employees index gained to 17 from 9, and the average wage index increased to 9 from 7 the prior month. The expected product demand during the next six months index jumped to 35 from 32.
The current price trend for the two sectors together fell to 0.37 from 0.58, while rising to 1.18 from 0.81 for retail alone and dropping to 0.05 from 0.41 for services, excluding retail.
The expected price trend index for the two sectors together slid to 0.89 in May from 1.07 in April, while decreasing to 0.96 from 1.67 for retail alone and growing to 0.79 from 0.76 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.
