Service sector activity "strengthened" in May, according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.
Overall, the service sector revenues index rose to 13 from 1 in April, while the number of employees index decreased to 4 from 6, the average wage index climbed to 16 from 14, and the expected product demand during the next six months index grew to 13 from 11.
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 surged to positive 53 from negative 5, the number of employees index slumped to 10 from 20, while the average wages index dropped to 19 from 35. The inventories index soared to positive 35 from negative 1, while the big-ticket sales index reversed to positive 25 from negative 24. The shopper traffic index jumped to positive 26 from negative 28, while expected product demand during the next six months rose to 20 from 3.
For services firms excluding retail, the revenues index was positive 7 compared with negative 3 last month, while the number of employees index rose to 3 from 1, and the average wage index grew to 16 from 10. The expected product demand during the next six months index rose to 13 from 11.
The current price trend for the two sectors together grew to 1.21 from 1.18, while slipping to 1.08 from 1.53 for retail alone and rising to 1.33 from 1.12 for services, excluding retail.
The expected price trend index for the two sectors together rose to 1.47 in May from 1.44 in April, while remaining 1.33 for retail alone and climbing to 1.47 from 1.46 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.
