Richmond Fed: Service sector drops, revenues lowest since July 2016

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Service sector companies “saw slowing growth in April,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.

Overall, the service sector revenues index dropped to 2 from 25, while the number of employees index fell to 7 from 15, the wages index plunged to 16 from 32, and the demand index fell to 11 from 23.

The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.

The current prices paid trend slid to 1.76 from 1.84, growing to 1.59 from 1.39 for prices received.

The expected price paid trend decreased to 2.14 in April from 2.15 in March, while prices received rose to 2.06 from 1.83.

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.

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Economic indicators Federal Reserve Bank of Richmond