Kansas City Fed Services Activity Index Turns Negative in March
March 24 2023 - 12:02PM
Dow Jones News
By Colin Kellaher
Growth in services activity in the middle of the U.S. fell a bit
in March, and expectations for future activity slowed moderately,
according to a monthly survey by the Federal Reserve Bank of Kansas
The Tenth District Services Survey's composite index, a weighted
average of indexes covering revenue/sales, employment and
inventory, came in at minus 4 in March, down from a reading of 1 in
February but up from minus 11 in January. Readings above zero
indicate expansion, while those below zero indicate
The Kansas City Fed said March's decline was driven by slowing
in wholesale trade, auto and professional services activity, which
more than offset gains in real-estate, restaurant and tourism
activity during the month.
The bank said its index of expectations for future services
activity fell to 2 in March from 13 in February.
Chad Wilkerson, senior vice president at the bank, noted that
nearly 70% of firms surveyed reported lower profit margins from the
start of the year due to price pressures.
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 was broadly
stable in March for the second month in a row, suggesting the
factory sector continues to face headwinds amid weakening
Write to Colin Kellaher at firstname.lastname@example.org
(END) Dow Jones Newswires
March 24, 2023 11:47 ET (15:47 GMT)
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