NEW YORK – “Activity softened in the Fifth District service sector in June,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released today, “Revenue expansion at non-retail businesses slowed and retail sales were nearly flat, hampered in part by a continued slump in big-ticket sales. In addition, shopper traffic waned and inventory reductions slowed.”
The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.
Overall, the service sector revenues index dipped to 5 in June, from 8 in May, while the number of employees index slipped to 2 from 10, the average wage index held at 8, and the expected product demand during the next six months index climbed to 29 from 26.
By sector, the retail area excluding services firms reported the sales revenues index slumped to negative 1 in June from zero in May, the number of employees index widened to negative 12 from negative 8, while the average wages index decreased to 7 from 11. The inventories index improved to negative 19 from negative 34, while the big-ticket sales index narrowed to negative 13 from negative 17. The shopper traffic index slipped to negative 8 from negative 1, while expected product demand during the next six months rose to 16 from 12.
For services firms excluding retail, the revenues index was 5, compared to 11 last month, while the number of employees index fell to 7 from 17, and the average wage index remained at 9. The expected product demand during the next six months index inched up to 36 from 35.
The current price trend for the two sectors together fell to 0.32 from 0.37, while dipping to 0.85 from 1.18 for retail alone and growing to 0.15 from 0.05 for services, excluding retail.
The expected price trend index for the two sectors together rose to 1.04 in June from 0.89 in May, while increasing to 1.43 from 0.96 for retail alone and growing to 0.90 from 0.79 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.
