The Richmond Fed’s Fifth District Service Sector Survey was broadly unchanged in September 2026. The revenues index moved back to neutral, rising to 0 from -8 in August, while the demand index edged down to 2 from 3.
Assessments of current business conditions improved modestly: the local business conditions index increased to -8 in September from -12 in August. By contrast, expectations softened, with the index for future business conditions declining to 0 from 9.
Labor market indicators weakened somewhat. The current employment index fell to 2 in September from 8 in August, and the forward-looking employment index also ticked down, though it remained in positive territory.
Price pressures were mixed. The average growth rate of prices paid eased somewhat in September, while the growth rate of prices received picked up slightly. Over the next 12 months, firms expected the pace of price increases for inputs (prices paid) to remain broadly stable, while anticipating a modest moderation in the growth of prices received.
Overall, firms remained relatively optimistic. Expectations for future revenues, demand, and local business conditions stayed solidly positive, despite the softer readings on some individual indicators.
