By Colin Kellaher

Services activity in the middle of the U.S. fell in September, but expectations for future activity rose, according to a monthly survey by the Federal Reserve Bank of Kansas City.

The Tenth District Services Survey's composite index, a weighted average of indexes covering revenue/sales, employment and inventory, came in at minus 7 in September, down from 20 in August. Readings above zero indicate expansion, while those below zero indicate contraction.

However, the Kansas City Fed said expectations for future services activity came in at 19 in September, up from a reading of 11 in August.

The bank said its general revenue and sales index fell sharply in September, driven by reduced activity at restaurants, hotels and auto dealers amid the coronavirus pandemic.

The Kansas City Fed's survey includes participants from such service industries as retail and wholesale trade, automobile dealers, real estate and restaurants. The survey provides information on current services 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, showed that factory activity in the region expanded in September for a fourth straight month, but at a slower pace than that of August.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

September 25, 2020 12:22 ET (16:22 GMT)