Kansas City Fed Services Activity Index Slips But Stays Positive in September
By Colin Kellaher
Growth in services activity in the middle of the U.S. eased
again but remained positive in September, while expectations for
future activity edged higher, 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 13 for September, down slightly from 14 in
August and below July's reading of 25. Readings above zero indicate
expansion, while those below zero indicate contraction.
The Kansas City Fed said September's reading reflects an
increase in wholesale, real-estate, and professional and high-tech
business activity, while auto, transportation and restaurant
The bank said many firms surveyed reported staffing shortages
amid rising demand for goods and services, while input and selling
prices were higher than a year ago for the majority of firms.
Some 88% of those surveyed reported higher input costs due to
elevated material or labor expenses, but few said they were able to
fully pass those increased costs through to customers in the form
of higher prices.
The Kansas City Fed said expectations for future services
activity remained ticked up to 27 in September from 26 in
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. also
slipped but remained positive in September.
Write to Colin Kellaher at firstname.lastname@example.org
(END) Dow Jones Newswires
September 24, 2021 11:50 ET (15:50 GMT)
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