NEW YORK – “Service sector activity continued to improve overall in January,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday, “Retail sales accelerated, despite a sharp fall in big-ticket sales and declining shopper traffic.”
Overall, the service sector revenues index slipped to 18 in January, from 22 in December, while the number of employees index rose to 8 from 5, the average wage index dropped to 5 from 15, and the expected product demand during the next six months index slid to 17 from 19.
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 surged to 23 in January from 4 in December, the number of employees index improved to negative 7 from negative 16, while the average wages index declined to negative 20 from positive 2. The inventories index doubled to 24 from 12, while the big-ticket sales index slumped to negative 52 from negative 5. The shopper traffic index drooped to negative 9 from negative 2, while expected product demand during the next six months dropped to negative 9 from positive 28.
For services firms excluding retail, the revenues index was 17 compared to 24 last month, while the number of employees index decreased to 10 from 13, and the average wage index fell to 9 from 18. The expected product demand during the next six months index climbed to 18 from 16.
The current price trend for the two sectors together dipped to 1.20 from 1.44, while slipping to 1.62 from 1.91 for retail alone and slowing to 1.09 from 1.23 for services, excluding retail.
The expected price trend index for the two sectors together grew to 1.66 in January from 1.53 in December, while increasing to 1.67 from 1.45 for retail alone and rising to 1.69 from 1.60 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.
