NEW YORK – “Service sector revenues picked up in July, fueled by solid gains at non-retail services firms,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released today, “Retail sales remained flat, however, while big-ticket sales dropped sharply. Shopper traffic also fell this month. Retail inventories declined, although reductions were somewhat less prevalent than a month ago. Retail merchants and survey respondents at non-retail firms were upbeat about sales prospects for the next six months.”
The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.
Overall, the service sector revenues index rose to 8 in July, from 5 in June, while the number of employees index slipped to negative 6 from positive 2, the average wage index fell to negative 4 from positive 8, and the expected product demand during the next six months index slipped to 27 from 29.
By sector, the retail area excluding services firms reported the sales revenues index gained to zero in July from negative 1 in June, the number of employees index widened to negative 29 from negative 12, while the average wages index decreased to negative 1 from positive 7. The inventories index improved to negative 13 from negative 19, while the big-ticket sales index widened to negative 23 from negative 13. The shopper traffic index slipped to negative 19 from negative 8, while expected product demand during the next six months slid to 12 from 16.
For services firms excluding retail, the revenues index was 10, compared to 5 last month, while the number of employees index fell to zero from 7, and the average wage index declined to negative 1 from positive 9. The expected product demand during the next six months index slipped to 32 from 36.
The current price trend for the two sectors together grew to 0.49 from 0.32, while rising to 1.10 from 0.85 for retail alone and growing to 0.31 from 0.15 for services, excluding retail.
The expected price trend index for the two sectors together fell to 0.84 in July from 1.04 in June, while increasing to 1.49 from 1.43 for retail alone and slowing to 0.67 from 0.90 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.
