NEW YORK – “Activity in the service sector remained weak in September,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released today, “A steep drop in big-ticket sales weighed down total retail sales, and shopper traffic continued to decline this month. Retail inventory depletion slowed, compared to a month ago. Revenues also contracted at non-retail services firms. Looking ahead six months, however, retailers expected demand for goods to pick up, and services providers anticipated solid demand for their services.”
The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.
Overall, the service sector revenues index rose to negative 5 in September, from negative 10 in August, while the number of employees index slipped to negative 12 from negative 8, the average wage index rose remained 8, and the expected product demand during the next six months index slipped to 17 from 20.
By sector, the retail area excluding services firms reported the sales revenues index held at negative 8 in September, the number of employees index rebounded to negative 22 from negative 29, while the average wages index decreased to negative 2 from positive 5. The inventories index narrowed to negative 7 from negative 16, while the big-ticket sales index sank to negative 58 from negative 20. The shopper traffic index climbed to negative 16 from negative 21, while expected product demand during the next six months rose to 8 from 4.
For services firms excluding retail, the revenues index was negative 6, compared to negative 7 last month, while the number of employees index fell to negative 8 from zero, and the average wage index remained 9. The expected product demand during the next six months index slipped to 20 from 25.
The current price trend for the two sectors together slid to 0.34 from 0.66, while jumping to 1.22 from 1.02 for retail alone and slowing to 0.01 from 0.53 for services, excluding retail.
The expected price trend index for the two sectors together fell to 0.80 in September from 0.83 in August, while increasing to 1.85 from 1.50 for retail alone and slowing to 0.38 from 0.57 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.
