By Sabela Ojea
Services activity in the middle of the U.S. increased moderately in March, with steady expectations for future activity, according to a monthly survey by the Federal Reserve Bank of Kansas City released Friday.
The Tenth District Services Survey's composite index, a weighted average of indexes covering revenue/sales, employment and inventory, came in at 7 in March, down from 12 in February and up from minus 2 in January. Readings above zero indicate expansion, while those below zero indicate contraction.
The Kansas City Fed said the rise in March activity was driven mainly by growth in professional services, restaurants, and auto dealers. All month-over-month indexes were positive, except for part-time employment and access to credit.
The bank also noted that input price growth continued to outpace increases in selling prices, but that the spread between the two has narrowed.
The bank said its index of expectations for future services picked up to 1 from minus 3, as firms surveyed said they expect revenue to decrease somewhat and employment to grow slightly.
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 Friday, showed that factory activity in the central U.S. rose at a slower pace in March than in February, with flat expectations for the next six months.
Write to Sabela Ojea at sabela.ojea@wsj.com
(END) Dow Jones Newswires
03-29-24 1143ET
