NEW YORK – “Service sector activity strengthened in March,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released today, “Retail sales expanded and inventories decreased. In addition, the drop in big-ticket sales abated this month. Shopper traffic continued to slump, however. At non-retail services firms, revenues fell, but the decline was less pervasive than in recent months. Price change in the broad service sector was nearly the same as a month ago.”
The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.
Overall, the service sector revenues index increased to zero in March, from negative 15 in February, while the number of employees index gained to negative 3 from negative 8, the average wage index rose to 9 from 5, and the expected product demand during the next six months index crept to 19 from 17.
By sector, the retail area excluding services firms reported the sales revenues index surged to positive 8 in March from negative 15 in February, the number of employees index narrowed to negative 8 from negative 22, while the average wages index increased to 11 from 7. The inventories index slipped to negative 25 from negative 1, while the big-ticket sales index improved to negative 9 from negative 44. The shopper traffic index increased to negative 13 from negative 19, while expected product demand during the next six months held at 27.
For services firms excluding retail, the revenues index was negative 3, compared to negative 17 last month, while the number of employees index inched up to zero 3 from negative 3, and the average wage index increased to 8 from 4 the prior month. The expected product demand during the next six months index jumped to 18 from 13.
The current price trend for the two sectors together dipped to 0.30 from 0.33, while gaining to 1.07 from 0.84 for retail alone and slipping to positive 0.02 from positive 0.14 for services, excluding retail.
The expected price trend index for the two sectors together grew to 0.98 in March from 0.71 in February, while increasing to 1.93 from 1.80 for retail alone and growing to 0.64 from 0.30 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.
