KC Fed Services: Current Conditions Up but Expectations Down
According to the most recent Federal Reserve Bank of Kansas City’s Services Survey , service sector activity in the Tenth Federal Reserve District increased modestly in May. The top line services composite index (SA) increased to 10 in May from 3 in April and 15 in March, while the general revenue/sales index rose to 12 from 6. The employee count and hours worked indexes moved modestly positive after falling into negative territory in April. Despite this improvement in current conditions, the six-month expectations indexes generally ticked lower, with the forward composite index falling to 11 from 22, and the revenue/sales expectations index declining to 16 in May from 34 in April. The employment expectations indexes were mixed with employee count moving slightly lower and hours worked moving slightly higher m/mn. However, the part-time employment expectations index dropped to -8 from 10. Capex expectations increased to 17 from 1, a level more consistent with the prints for this i...