NY Fed Reserve Business Leaders Survey – Service Sector Still Troublesome

The New York Federal Reserve’s monthly report shows a continuing decline in service sector economic activity.  The report is based on a survey of business leaders in New York, Connecticut, and New Jersey.  According to the June report:

“Business activity in the region’s service sector continued to decline in June, according to firms responding to the Federal Reserve Bank of New York’s Business Leaders Survey.  The survey’s headline business activity index edged up three points but held below zero at -13.2.  The business climate index remained firmly negative at -48.3, suggesting the business climate continued to be considerably worse than normal.  Employment edged slightly lower, and wage growth dropped to its slowest pace in more than four years.  Supply availability worsened significantly.  Input price increases picked up, while selling price increases were little changed.  Firms remained pessimistic about the outlook, though less so than in the prior couple of months.”

Thus, while business activity in this sector has increased slightly, we are still well below normal.

You can see the full report of the New York Federal Reserve here.