Service sector activity “improved in March following February's weakness,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.
Overall, the service sector revenues index reversed to positive 9 from negative 2, while the number of employees index grew to 15 from 9, the average wage index increased to 16 from 8, and the expected product demand during the next six months index gained to 14 from 7.
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 doubled to 36 from 18, the number of employees index rose to 26 from 13, while the average wages index gained to positive 4 from negative 1. The inventories index soared to 33 from zero, while the big-ticket sales index increased to 18 from 11. The shopper traffic index gained to 35 from 32, while expected product demand during the next six months reversed to positive 20 from negative 6.
For services firms excluding retail, the revenues index was positive 5 compared with negative 6 last month, while the number of employees index climbed to 14 from 9, and the average wage index grew to 18 from 9. The expected product demand during the next six months index increased to 14 from 9.
The current price trend for the two sectors together slid to 1.30 from 1.65, while dropping to 1.12 from 1.64 for retail alone and falling to 1.33 from 1.65 for services, excluding retail.
The expected price trend index for the two sectors together decreased to 1.67 in March from 1.70 in February, while climbing to 1.42 from 1.28 for retail alone and dipping to 1.70 from 1.77 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.
