Overall economic activity in the Tenth Federal Reserve District increased significantly, but some sectors showed a decline, said the Federal Reserve Bank of Kansas City’s monthly Services Survey released on June 23.
“District services activity increased significantly in June,” Kansas City Fed Senior Vice President Chad Wilkerson said in the release. “In contrast, expectations for future activity edged lower as price increases continued.”
The monthly survey includes data on several activity indicators, such as sales, revenue, employment, and capital expenditures, as well as changes in the cost of raw materials and selling prices, according to the report. Participants come from a range of sectors, such as retail and wholesale trade, auto dealers, transportation, information, tech, and professional services, real estate, restaurants, health services, tourism, and other service businesses.
The month-over-month services composite index was 14 in June, up from 3 in May and 7 in April. The composite index is a weighted average of the revenue, sales, employment, and inventory indexes, the survey said.
Revenue and sales growth were driven by restaurants and retail, while automotive sales, transportation, real estate, and education services declined, the report said. All month-over-month indexes grew except input prices, which plateaued at 30, and access to credit declined into negative territory. The general revenues/sales index increased from 4 to 20, and the inventory levels and employee hours, wages and benefits indexes increased moderately, the report stated. The year-over-year composite index declined from -4 to -11, driven by decreases in employment and inventory levels, but revenues remained steady. Expectations for service activity declined slightly in June, with the composite index declining from 6 to -4.
The Kansas City Fed participates in making national monetary policy as a member of the Federal Reserve. It supervises and regulates many commercial banks and bank holding companies and offers financial services to depository institutions.
The Fed posted a summary of historical data, results from past surveys, and release dates for future surveys on its website, which also has other information about the Fed and its role in economic policy.
