Posted February 1, 2024
The Federal Reserve Bank of Kansas City released its January Services Survey, showing flat services activity and slow-growing selling prices in the Tenth District.
The month-over-month services composite index, a weighted average of revenue and sales, employment and inventory, was -2 in January, up from -7 in December and down from 0 in November in the Tenth District.
The Tenth District includes the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico.
Activity among industries was mixed, according to a release. The retail and transportation industries decreased “substantially,” while professional and health services experienced an increase in activity.
“Regional services activity was essentially flat in January,” senior vice president at the Federal Reserve Bank of Kansas City, Chad Wilkerson said in the release. “Firms’ sales stayed steady, but employment levels fell moderately with only slight increases anticipated in the coming months.”
Revenue and sales remained relatively flat but increased from -13 to -1. Full-time employees and part-time employment indexes fell to -11 and -10, respectively. Respondents to the Fed’s survey reported expected wage increases between 0-6 percent in 2024.
Additionally, expectations for future service activity increased slightly, citing “mild” increases in revenues and employment as an indicator for growth in the next six months.