Service sector activity "slowed going into the December holidays," according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.
Overall, the service sector revenues index plunged to 3 from 25, while the number of employees index decreased to 16 from 24, the average wage index remained at 22, and the expected product demand during the next six months index fell to 13 from 28.
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 slumped to 10 from 37, the number of employees index fell to 14 from 28, while the average wages index declined to 9 from 24. The inventories index fell to negative 34 from negative 3, while the big-ticket sales index slumped to negative 24 from positive 19. The shopper traffic index decreased to zero from 16, while expected product demand during the next six months dropped to negative 9 from positive 39.
For services firms excluding retail, the revenues index was 2 compared with 23 last month, while the number of employees index decreased to 16 from 24, and the average wage index grew to 23 from 22. The expected product demand during the next six months index slid to 15 from 26.
The current price trend for the two sectors together grew to 1.65 from 1.62, while falling to 1.69 from 1.90 for retail alone and climbing to 1.65 from 1.57 for services, excluding retail.
The expected price trend index for the two sectors together slid to 1.91 in December from 1.99 in November, while falling to 1.61 from 1.99 for retail alone and dipping to 1.94 from 1.99 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.
