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KC Fed Reports Business Activity Declined in December

A survey from the Federal Reserve of Kansas City shows the Tenth District services decreased in December and six month expectations are stagnate.

Posted December 26, 2023

The Federal Reserve Bank of Kansas City released its tenth district services survey, showing a moderate decline for December while the forecast for the next six months remains still.

According to the survey, the month-over-month services composite index was -10 in December, down from 1 in November and -1 in October. The Fed cites declines in tourism, retail, and autos as a likely cause of the December decline.

Employment levels in the tenth district were flat compared to previous months while wages and benefits remained expansionary. The year-over-year composite index increased from 2 to 8.

Expectations for services activity declined to -1 from 13 leaving many businesses surveyed speculating more downward trajectory in terms of revenue and inventory for the next six months. These six-month expectations are accompanied by a steady increase in employment.