NEW YORK – “Activity in the broad service sector picked up in March, pushed by gains at non-retail firms,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released today, “Retail sales activity remained soft, with continued weakness in big-ticket sales. Shopper traffic flattened and retail inventories dipped compared to a month earlier. In contrast, revenues climbed sharply at non-retail services firms. Overall, survey respondents expected business to strengthen during the next six months.”
The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.
Overall, the service sector revenues index increased to 14 in March, from 11 in February, while the number of employees index fell to 8 from 10, the average wage index rose climbed to 10 from 6, and the expected product demand during the next six months index jumped to 23 from 17.
By sector, the retail area excluding services firms reported the sales revenues index remained negative 12 in March, the number of employees index reversed to negative 7 from positive 3, while the average wages index dropped to 10 from 27. The inventories index slumped to negative 6 from positive 20, while the big-ticket sales index narrowed to negative 33 from negative 37. The shopper traffic index rose to positive 9 from negative 9, while expected product demand during the next six months improved to negative 12 from negative 31.
For services firms excluding retail, the revenues index was 21, compared to 7 last month, while the number of employees index rose to 12 from 9, and the average wage index climbed to 11 from 1. The expected product demand during the next six months index rose to 37 from 22.
The current price trend for the two sectors together grew to 0.92 from 0.55, while gaining to 1.81 from 1.46 for retail alone and growing to 0.69 from 0.41 for services, excluding retail.
The expected price trend index for the two sectors together fell to 1.50 in March from 1.56 in February, while increasing to 1.84 from 1.78 for retail alone and dipping to 1.44 from 1.54 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.
