NEW YORK – “Service sector activity retreated in August,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday, “Retail sales fell, as shopper traffic declined and big-ticket sales dropped. Retail inventories inched up. Revenues at non-retail services firms also edged higher, compared to July. Retailers had a bleak outlook for sales in the six months ahead, while survey participants at non-retail firms were mildly optimistic about demand for their services.”
Overall, the service sector revenues index decreased to negative 1 in August, from positive 7 in July, while the number of employees index fell to negative 5 from zero, the average wage index slid to 7 from 12, and the expected product demand during the next six months index nearly plunged to 3 from 23.
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 slumped to negative 32 in August from positive 11 in July, the number of employees index reversed to negative 8 from positive 6, while the average wages index slipped to 2 from 17. The inventories index reversed to positive 3 from negative 21, while the big-ticket sales index declined to negative 40 from negative 25. The shopper traffic index held at negative 11, while expected product demand during the next six months fell to negative 23 from positive 3.
For services firms excluding retail, the revenues index was 10, compared to 6 last month, while the number of employees index narrowed to negative 3 from negative 4, and the average wage index dipped to 8 from 12. The expected product demand during the next six months index fell to 7 from 27.
The current price trend for the two sectors together rose to 1.03 from 0.79, while gaining to 1.66 from 0.75 for retail alone and growing to 0.93 from 0.86 for services, excluding retail.
The expected price trend index for the two sectors together rose to 1.48 in August from 1.34 in July, while increasing to 2.08 from 1.20 for retail alone and dipping to 1.39 from 1.40 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.
