By The Federal Reserve Bank of Kansas City recently conducted a monthly survey to assess the growth in services activity within the middle region of the United States. Although there was a slight decrease in July’s results, expectations for future activity showed an upward trend.
Composite Index and Current State
The Tenth District Services Survey utilizes a composite index, which is a combination of revenue/sales, employment, and inventory indexes. The index for July came in at minus 1, compared to June’s reading of 14 and May’s reading of 3. It’s important to note that readings above zero indicate expansion, while those below zero indicate contraction.
The survey revealed that while tourism revenue experienced a substantial increase in July, wholesale and real estate activity declined significantly. Additionally, growth in restaurants and retail showed signs of cooling.
Expectations for Future Activity
On a positive note, the Kansas City Fed reported that the expectations for future services activity rebounded from minus 4 in June to a reading of 4 in July. This indicates an optimistic outlook for the coming months.
Participants and Regional Focus
The Kansas City Fed’s survey includes participants from various service industries, such as retail and wholesale trade, automobile dealers, real estate, and restaurants. The survey primarily focuses on providing information about current services activity in the Tenth District. This district consists of Colorado, Oklahoma, Wyoming, Nebraska, Kansas, the northern half of New Mexico, and the western third of Missouri.
Manufacturing Activity
In addition to the services survey, the bank also released its monthly manufacturing survey. The latest results showed that factory activity in the central U.S. region continued to decline in July.
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