Richmond Fed: Service sector softer in Oct., revenues turn negative

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Service sector “activity softened in October,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.

Overall, the current service sector revenues index decreased to negative 1 from positive 18, its first negative reading since November 2013, services expenditures rose to 20 from 12, capital expenditures held at 21, while the number of employees index dropped to 13 from 22, the available skills widened to negative 32 from negative 15, the wages index gained to 37 from 30, and the demand index fell to 11 from 30.

The expected service sector revenues index decreased to 33 from 56, services expenditures climbed to 22 from 19, capital expenditures grew to 34 from 31, while the number of employees index declined to 26 from 41, the available skills plunged to negative 35 from negative 9, the wages index jumped to 56 from 42, and the demand index dropped to 26 from 51.

The indexes are the percentage of responding firms reporting increase, less the percentage reporting a decrease.

The current prices paid trend soared to 4.07 from 2.69, growing to 2.64 from 2.42 for prices received.

The expected price paid trend increased to 3.73 in October from 2.89 in September, while prices received climbed to 2.99 from 2.55.

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.

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Economic indicators Federal Reserve Bank of Richmond