Fifth District Survey of Service Sector Activity

Aug. 22, 2017 10 a.m.

Service Sector Firms in the Fifth District Report Improved Activity in August

Overview

Reports from service sector firms in the Fifth District improved notably in August, according to the latest survey by the Federal Reserve Bank of Richmond. The revenues index for all service sector firms rose from 12 in July to 22 in August, surpassing the June mark of 19. The increase was driven by an increase in the revenues index for non-retail services firms; the revenues index for retail firms softened somewhat.

Labor market reports from services firms were also generally upbeat. The index for employment in the overall service sector remained high at 22 in August while the average wage index posted a reading of 23 — down from 30 in July. Meanwhile, the index for expected demand during the next six months also strengthened.

In terms of prices, price growth for the overall service sector was little changed from July to August, while expectations for price growth in the next six months moderated slightly.

Charts

Index Table

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