South By North Strategies, Ltd.

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):

A stronger performance at non-retail services firms pushed up overall service sector activity this month, according to the November survey by the Federal Reserve Bank of Richmond. However, weakness persisted in the retail sector, with overall softness in retail sales and another steep drop in big-ticket sales. In addition, shopper traffic withered. However, inventories edged up only slightly. Looking ahead six months, retail merchants remained optimistic about consumer demand, although their exuberance of a month ago waned. At services firms, survey respondents also remained upbeat, but less enthusiastic than in October.
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A similar situation was reported in service sector labor markets — retailers cut jobs, while hiring managers at services firms added employees. Average wages grew on pace with a month ago.
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Service sector price growth inched up and, looking ahead, survey respondents expected an additional uptick over the next six months.