KC Fed: Services Indexes Increase in February but Expectations Soften Slightly

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Like results of its Manufacturing Survey, the Federal Reserve Bank of Kansas City’s February Services Survey indicated that services activity in the Tenth Federal Reserve District increased in the month. The top line services composite index (SA) increased to 6 in February from 2 in January, for the third consecutive m/m increase in this measure. The employment index weakened to -5 from -2 in the prior month, but the hours worked and part-time employment indexes improved. The six-month expectations composite index was slightly lower, dropping to 13 from 15 in January, and revenue/sales expectations cooled to 21 from 30, but all three of the employment expectations indexes increased m/m. Finally, capex expectations were a touch higher at 17 compared to 14 in January.


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