Kansas City Fed Services Activity Index Falls in January
January 27 2023 - 12:06PM
Dow Jones News
By Colin Kellaher
Growth in services activity in the middle of the U.S. fell in
January, and expectations for future activity moved into negative
territory, 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 11 in January, down from readings of
zero in December and 12 in November. Readings above zero indicate
expansion, while those below zero indicate contraction.
The Kansas City Fed said January's decrease was driven by lower
auto, retail trade, real-estate and wholesale trade activity, while
activity in transportation, tourism and health services rose during
The bank said expectations for future services activity posted a
reading of minus 2 in January, down from 4 in December.
Chad Wilkerson, senior vice president at the bank, noted that
while expectations for future services fell, hiring plans among
firms surveyed remained moderately positive.
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 central U.S. region contracted
slightly in January, signaling the sector's persisting headwinds as
demand dwindles amid rising interest rates.
Write to Colin Kellaher at email@example.com
(END) Dow Jones Newswires
January 27, 2023 11:51 ET (16:51 GMT)
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