NEW YORK – Service sector activity “remained generally soft in May, although employment picked up,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.
Overall, the service sector revenues index slumped to negative 2 in May, from zero in April, while the number of employees index jumped to 10 from zero, the average wage index climbed to 14 from 10, and the expected product demand during the next six months index fell to 18 from 26.
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 rebounded to negative 15 in May from negative 53 in April, the number of employees index reversed to positive 2 from negative 5, while the average wages index inched up to negative 7 from negative 9. The inventories index gained to negative 2 from negative 13, while the big-ticket sales index rose to negative 34 from negative 66. The shopper traffic index surged to zero from negative 51, while expected product demand during the next six months increased to negative 3 from negative 17.
For services firms excluding retail, the revenues index was 3 compared to 16 last month, while the number of employees index increased to 13 from 1, and the average wage index climbed to 22 from 14. The expected product demand during the next six months index dropped to 26 from 37.
The current price trend for the two sectors together dipped to 1.21 from 1.28, while sliding to 1.42 from 1.84 for retail alone and gaining to 1.25 from 1.10 for services, excluding retail.
The expected price trend index for the two sectors together fell to 1.58 in May from 1.59 in April, while decreasing to 1.93 from 2.63 for retail alone and growing to 1.45 from 1.35 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.
