FX.co ★ US 5th District Service Sector Shrinks for 2nd Month

The Fifth District Service Sector Survey, conducted by the Federal Reserve Bank of Richmond, has reported a sustained decline in activity for December 2025. The survey highlights that the revenues index has slipped to -6 from a previous -4, with the demand index similarly declining to -3 from 4. Despite these contractions, expectations for future revenues and demand remain robustly positive. The local business conditions index saw a minor improvement, rising to -11 from -15 in November, while the future outlook edged up slightly to 7 from 4. The current employment index showed growth, increasing to 5 in December from 1 in November; however, the forward-looking employment index declined to 14 from 24. There was a rise in the wages index, moving up to 17 from 12, with firms continuing to anticipate wage increases over the forthcoming six months. In terms of pricing, the average growth rate of prices paid rose considerably in December, whereas the growth in prices received experienced a slight uptick. Firms projected a moderation in the growth of prices paid and a slight decrease in growth for prices received over the next 12 months.