Carolinas Survey of Business Activity

July 27, 2017

Business Conditions in the Carolinas Remained Upbeat in July

Overview

Firms in North Carolina and South Carolina generally reported improving conditions, according to the latest survey by the Federal Reserve Bank of Richmond. Although the index for general business conditions fell from 27 in June to 16 in July, it remained well above 0, as did the sales index, which fell from 23 in June to 18 in July.

Despite the decrease in the business conditions and sales indexes, the survey's labor market indicators generally improved. The employment and wages indexes both increased while the average workweek measure was little changed. Although there was some improvement in the index for the availability of necessary skills, it remained below 0 indicating that many firms still reported difficulty finding the skills that they need. Each of the three spending metrics (business services, capital expenditures, and equipment/software) increased slightly.

Looking ahead six months, most indexes for expected conditions remained strong, although many of the labor market and expenditure indexes softened. Meanwhile, current price growth accelerated in June for prices paid and prices received, although the indexes for expected prices changed little.

Charts

Index Table

Survey Participation, Report, and Data Questions

Jeannette Plamp
Associate Regional Economist
(804) 697-8152