Kansas City Fed Services Activity Index Turns Negative in September
September 25 2020 - 11:37AM
Dow Jones News
By Colin Kellaher
Services activity in the middle of the U.S. fell in September,
but expectations for future activity rose, 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 7 in September, down from 20 in August.
Readings above zero indicate expansion, while those below zero
indicate contraction.
However, the Kansas City Fed said expectations for future
services activity came in at 19 in September, up from a reading of
11 in August.
The bank said its general revenue and sales index fell sharply
in September, driven by reduced activity at restaurants, hotels and
auto dealers amid the coronavirus pandemic.
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 region expanded in September
for a fourth straight month, but at a slower pace than that of
August.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
September 25, 2020 12:22 ET (16:22 GMT)
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