By Colin Kellaher
Growth in service activity in the central United States slowed again but remained positive in September, while expectations for future activity edged up, according to the Federal Reserve Bank of Kansas City.
The Tenth District Service Survey Composite Index, a weighted average of indices covering income / sales, employment and inventory, stood at 13 for September, down slightly from 14 in August and below the July 25 reading. Readings above zero indicate expansion, while readings below zero indicate contraction.
The Kansas City Fed said the September reading reflected an increase in wholesale, real estate, professional and high-tech business activity, while auto, transportation and food service activity declined.
The bank said many companies surveyed reported staff shortages amid growing demand for goods and services, while input and selling prices were higher than a year ago for the majority of customers. companies.
Some 88% of respondents reported higher input costs due to high expenditure on materials or labor, but few said they were able to fully pass these increased costs on to customers under the form of higher prices.
The Kansas City Fed said expectations for future services activity remained limited to 27 in September from 26 in August.
The Kansas City Fed survey includes participants from service industries such as retail and wholesale, car dealerships, real estate and restaurants. The survey provides information on current service activity in the Tenth District, which includes Colorado, Oklahoma, Wyoming, Nebraska, Kansas, the northern half of New Mexico and the western third of Missouri.
The bank’s monthly manufacturing survey, released Thursday, found factory activity in the central U.S. also fell but remained positive in September.
Write to Colin Kellaher at [email protected]