Service Activity In The South Atlantic: June 2012
From the Federal Reserve Bank of Richmond’s latest survey of service-sector activity in the South Atlantic (District of Columbia, Maryland, North Carolina, South Carolina, Virginia and West Virginia):
Service sector revenues moved moderately higher in June, according to the latest survey by the Federal Reserve Bank of Richmond. Revenues accelerated at non-retail services firms and big-ticket sales posted solid gains at retail establishments. However, overall retail sales remained anemic and inventories rose as shopper traffic declined. Retailers downgraded their outlook for the rest of 2012, while non-retail services providers remained upbeat.
In service sector labor markets, hiring softened overall, weighed down by weakness in retail hiring. Average wage growth strengthened.
The overall rate of price change slowed somewhat in June, as acceleration in retail price increases was overshadowed by slower non-retail price growth since May. Survey respondents anticipated that the pace of price change would pick up in the six months ahead.