According to a recent survey by the Federal Reserve Bank of Kansas City, services activity in the middle of the U.S. remained relatively steady in August. While the composite index for the Tenth District Services Survey came in at a negative 1, indicating contraction, it was consistent with the previous month’s reading and down from June’s index of 14.
The survey revealed that input costs increased more than selling prices during the month, but there was a slight uptick in employment activity. Looking ahead, the index of expectations for future services activity held steady at 4, as surveyed firms anticipate stable revenue and growth in employment and inventories.
The participants in the Kansas City Fed’s survey represent various service industries such as retail and wholesale trade, automobile dealers, real estate, and restaurants. This survey provides valuable insights into current services activity in the Tenth District, which includes Colorado, Oklahoma, Wyoming, Nebraska, Kansas, the northern half of New Mexico, and the western third of Missouri.
It is worth noting that the bank’s monthly manufacturing survey, released separately, indicated no change in factory activity in the central U.S. region for August. However, expectations for future activity showed a slight improvement.
