Richmond Fed: Service sector growth strong in November
Service sector activity “continued to see strong growth in November,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.
Overall, the service sector revenues index grew to 30 from 24, while the number of employees index gained to 22 from 17, the average wage index rose to 28 from 26, and the expected product demand during the next six months index remained at 49.
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 fell to 26 from 32, the number of employees index gained to 30 from 24, while the average wages index jumped to 39 from 23. The inventories index climbed to 28 from 14, while the big-ticket sales index soared to 21 from 5. The shopper traffic index dropped to 4 from 23, while expected product demand during the next six months rose to 67 from 52.
For services firms excluding retail, the revenues index was 31 compared with 23 last month, while the number of employees index increased to 20 from 16, and the average wage index held at 26. The expected product demand during the next six months index slid to 46 from 49.
The current price trend for the two sectors together rose to 1.54 from 1.45, while declining to 1.65 from 2.31 for retail alone and gaining to 1.52 from 1.46 for services, excluding retail.
The expected price trend index for the two sectors together decreased to 1.55 in November from 1.69 in October, while falling to 1.96 from 2.33 for retail alone and slowing to 1.51 from 1.69 from 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.