Kansas City Fed Services Activity Index Up Again in April
By Colin Kellaher
Services activity in the middle of the U.S. 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's composite index, a weighted
average of indexes covering revenue/sales, employment and
inventory, came in at 20 for April, compared with readings of 22 in
March and 1 in February. Readings above zero indicate expansion,
while those below zero indicate contraction.
The Kansas City Fed said its general revenue and sales index
remained high in April, helped by more wholesale, retail, tourism
and restaurant activity, while auto and real-estate activity fell
The bank said the pace of growth for input prices remained near
record high in April, while selling prices rose to their highest
level since the survey began in 2014. The Kansas City Fed said
nearly 80% of the businesses it surveyed reported higher selling
prices compared to pre-pandemic levels, mostly due to higher input
The bank said some 65% of firms surveyed listed a lack of
qualified workers among the biggest risks to business plans over
the next year, while 46% flagged supply-chain issues.
The Kansas City Fed said expectations for future services
activity came in at 26 in April, compared with reading of 26 in
March and 20 in February, amid expectations of higher sales
activity and increased wages and benefits.
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,
found that factory activity in the central part of the U.S.
accelerated its expansion pace in April from already solid levels
Write to Colin Kellaher at firstname.lastname@example.org
(END) Dow Jones Newswires
April 23, 2021 11:39 ET (15:39 GMT)
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