Kansas City Fed’s services activity index rose again in April
By Colin Kellaher
Services activity in the middle of the United States continued to improve in April, and expectations for future activity also rose, according to the Federal Reserve Bank of Kansas City.
The Tenth District Services Survey Composite Index, a weighted average of indexes covering income / sales, employment and inventory, stood at 20 for April, compared to readings of 22 in March and 1 in February. . Readings above zero indicate expansion, while readings below zero indicate contraction.
The Kansas City Fed said its overall revenue and selling index remained high in April, helped by greater wholesale, retail, tourism and food service activity, while the activity automotive and real estate had declined slightly.
The bank said the pace of growth in input prices remained near an all-time high in April, while selling prices hit their highest level since the investigation began in 2014. The Kansas City Fed has said nearly 80% of the companies surveyed reported higher selling prices compared to pre-pandemic levels, mainly due to rising input prices.
The bank said about 65% of companies surveyed cited the lack of skilled workers as one of the biggest risks to business plans over the next year, while 46% reported chain problems. supply.
The Kansas City Fed said expectations for future services activity were 26 in April, down from 26 in March and 20 in February, amid rising sales and rising wages and benefits.
The Kansas City Fed’s 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 that factory activity in the central U.S. accelerated its pace of expansion in April from already strong levels in March.
Write to Colin Kellaher at [email protected]
(END) Dow Jones News Wire
April 23, 2021 11:39 a.m.ET (3:39 p.m. GMT)
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