Richmond Fed Services Index Weakens

2026-06-23 14:04 By Isabela Couto 1 min. read

The Richmond Fed Fifth District Service Sector Survey was flat in June 2026, with the revenues index falling to -1 from 14 and the demand index declining to 3 from 15.

Local business conditions also weakened, with the index dropping to -9 from 0 in May.

Despite softer current activity, expectations remained resilient, as the indexes for future revenues and demand stayed firmly in positive territory.

The future local business conditions index rose to 15.

Labor market conditions improved, with the current employment index increasing to 8 from -1, while the forward-looking employment index held steady at 24.

Both current and expected wages remained firmly positive.

On prices, firms reported slightly faster growth in prices paid, while price growth received was little changed.

Over the next 12 months, businesses expect slower growth in input costs and a slight pickup in prices received.



News Stream
Richmond Fed Services Index Weakens
The Richmond Fed Fifth District Service Sector Survey was flat in June 2026, with the revenues index falling to -1 from 14 and the demand index declining to 3 from 15. Local business conditions also weakened, with the index dropping to -9 from 0 in May. Despite softer current activity, expectations remained resilient, as the indexes for future revenues and demand stayed firmly in positive territory. The future local business conditions index rose to 15. Labor market conditions improved, with the current employment index increasing to 8 from -1, while the forward-looking employment index held steady at 24. Both current and expected wages remained firmly positive. On prices, firms reported slightly faster growth in prices paid, while price growth received was little changed. Over the next 12 months, businesses expect slower growth in input costs and a slight pickup in prices received.
2026-06-23
5th District Service Sector Growth Hits Near 1-1/2-Year High
The Fifth District Service Sector Survey revealed strong improvement in May 2026, with the revenues index rising to 14 from 9, its highest since December 2024, according to the Federal Reserve Bank of Richmond. The demand index also increased to 15 from 10. The indexes for future revenues and demand remained firmly in positive territory. The local business conditions index improved to 0 in May from -6 in April, while the future index rose to 12. The current employment index fell to -1 from 6, while the forward-looking employment index was broadly unchanged at 24. Both current and future wages indexes stayed in positive territory. The average growth rates of prices paid (5.4 vs 5.7) and received (3.4 vs 3.5) eased slightly. Firms expect growth in prices paid and received to slow a bit over the next 12 months.
2026-05-27
US Fifth District Services Stay Resilient
The Fifth District Service Sector Activity remained relatively solid in April, as the revenues index held steady at 9, while the demand index eased to 10 from 21 but stayed in positive territory, pointing to continued expansion. Expectations remained strong, with forward-looking indexes for both revenues and demand firmly positive. The local business conditions index slipped to -6 from 2, while the outlook index edged down slightly to 6. Employment conditions softened modestly, with the current index falling to 6 from 9, though the forward-looking measure rose to 25, signaling hiring optimism. Wage growth remained stable, and firms continued to expect increases, while price pressures picked up slightly but are seen easing ahead.
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