The Richmond Fed’s Fifth District Service Sector Survey was essentially unchanged in June 2026, as overall activity softened. The revenues index fell to -1 from 14, and the demand index declined to 3 from 15. Assessments of local business conditions also deteriorated, with that index dropping to -9 from 0 in May.
Despite weaker current activity, expectations remained solid. Indexes for future revenues and demand stayed well in positive territory, and the index for future local business conditions rose to 15. Labor market indicators improved: the current employment index increased to 8 from -1, and the forward-looking employment index held at a robust 24. Both current and expected wage measures remained clearly positive.
On the pricing front, firms reported a slightly faster pace of growth in prices paid, while growth in prices received was largely unchanged. Looking ahead 12 months, businesses anticipate slower growth in input costs and a modest pickup in prices received.
