FX.co ★ US 5th District Services Show Moderate Improvement

The Richmond Fed's Fifth District Survey of Service Sector Activity reported modest improvements for August 2025. The revenue index experienced a slight increase, moving up to 4 from July's 2, and the demand index also saw a rise, climbing to 13 from 5. Projections for future revenues and demand have moved further into optimistic territory. While local business conditions improved a bit, the current index improved to 6 from a negative 8, and the future index advanced to 11 from 6. Employment conditions, however, remained mixed; the current employment index slightly decreased to -1 from 0, contrary to the future employment index, which showed a significant increase to 20 from 4. The wages index rose to 24, reflecting ongoing expectations of wage growth in the forthcoming six months. Regarding prices, the rate at which prices are paid stayed steady, while prices received saw a modest uptick. Firms predict only minor changes in the rate of price increase for their goods and services over the next year.