NEW YORK – “Service sector activity weakened in September,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday, “Revenues dropped at both retail and non-retail establishments. Retail shopper traffic fell, and big-ticket sales also ended the month in decline. Merchants' inventories edged up on pace with a month ago. Retailers expected sales to remain weak for the six months ahead, and non-retail services providers anticipated flattening in business prospects over that period.”
Overall, the service sector revenues index decreased to negative 4 in September, from negative 1 in August, while the number of employees index grew to negative 2 from negative 5, the average wage index rose to 8 from 7, and the expected product demand during the next six months index nearly plunged to negative 1 from positive 3.
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 jumped to negative 10 in September from negative 32 in August, the number of employees index reversed to positive 1 from negative 8, while the average wages index climbed to 3 from 2. The inventories index rose to 4 from 3, while the big-ticket sales index declined to negative 48 from negative 40. The shopper traffic index fell to negative 32 from negative 11, while expected product demand during the next six months held at negative 23.
For services firms excluding retail, the revenues index was negative 3, compared to positive 10 last month, while the number of employees index widened to negative 5 from negative 3, and the average wage index inched up to 9 from 8. The expected product demand during the next six months index fell to 2 from 7.
The current price trend for the two sectors together fell to 0.86 from 1.03, while dipping to 1.62 from 1.66 for retail alone and slowing to 0.48 from 0.93 for services, excluding retail.
The expected price trend index for the two sectors together slid to 1.43 in September from 1.48 in August, while decreasing to 1.71 from 2.08 for retail alone and dipping to 1.35 from 1.39 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.
