US 5th District Service Sector Shrinks for 2nd Month

2025-12-23 15:06 By Luisa Carvalho 1 min. read

The Fifth District Service Sector Survey showed a second consecutive contraction in activity in December 2025, according to the Federal Reserve Bank of Richmond.

The revenues index inched down to -6 from -4 while the demand index decreased to -3 from 4.

Expectations for future revenues and demand remained solidly in positive territory.

The local business conditions index increased slightly to -11 from -15 in November, and the future outlook inched up to 7 from 4.

The current employment index increased to 5 in December from 1 in November, while the forward-looking index fell to 14 from 24.

The wages index increased to 17 from 12 and firms continued to expect to increase wages over the next six months.

Turning to prices, the average growth rate of prices paid increased notably in December, while growth in prices received ticked up.

Firms expected growth in prices paid to moderate and growth in prices received to decrease slightly over the next 12 months.



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