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Fifth District Survey of Service Sector Activity

April 24, 2018 10 a.m.

Fifth District Service Sector Firms Reported Slowing Growth in April

Overview

The Fifth District's service sector saw slowing growth in April, according to the results of the latest survey by the Federal Reserve Bank of Richmond. The revenues index dropped significantly, from 25 in March to 2 in April, its lowest value since July 2016. While most measures of service sector growth fell in April, the majority remained in expansionary territory, and firms were still optimistic that they would see an uptick in growth in the next six months.

On the employment front, a smaller portion of firms reported hiring in April than in March, and the weekly hours indicator was negative for the first time since 2013. However, firms generally expected to see growth in the coming months across all four measures of employment.

Prices paid by service sector firms increased at a slower pace again in April, but at a faster rate for prices received, on average. Firms expect to see accelerated growth for both prices paid and prices received in the near future.

Charts

Index Table

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Regional Survey Team
(804) 697-8702