By Colin Kellaher
Growth in services activity in the middle of the U.S. edged lower in October, while expectations for future activity picked up, according to a monthly survey by the Federal Reserve Bank of Kansas City.
The Tenth District Services Survey’s composite index, a weighted average of indexes covering revenue/sales, employment and inventory, came in at minus 1 in October, down from a reading of 2 in September and level with minus 1 in August. Readings above zero indicate expansion, while those below zero indicate contraction.
The Kansas City Fed said revenue in transportation, real estate and tourism increased in October but declined in wholesale and retail trade, autos and healthcare.
The bank also noted that input cost increases continued to far outpace selling prices.
The bank said its index of expectations for future services activity was 7 in October, up from 3 in September and 4 in August, as firms surveyed grew more optimistic about revenue for the next six months.
The Kansas City Fed’s survey includes participants from such service industries as retail and wholesale trade, automobile dealers, real estate and restaurants. The survey provides information on 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.
The bank’s monthly manufacturing survey, released Thursday, showed that factory activity in the central U.S. fell for the second consecutive month in October, while expectations for future activity held steady.
Write to Colin Kellaher at [email protected]
(END) Dow Jones Newswires
10-27-23 1143ET
