FX.co ★ 5th District Services Stagnates in October

The October 2025 Fifth District Service Sector Survey, released by the Federal Reserve Bank of Richmond, indicated stagnant activity levels. The index for revenues experienced a modest increase, moving up to 4 from a previous 1, while demand remained consistent at 4. Although expectations for future revenues and demand softened, they remained positive. The index measuring local business conditions showed some improvement, increasing to -1 from -7, yet future outlooks were still cautiously pessimistic, settling at -3. Employment figures remained stable, reflected by an index of 0, however, projections for hiring over the next six months improved, climbing to 14 from 11. The wages index remained steady at 17, with ongoing expectations for wage growth among firms. There was a moderate acceleration in input price growth and a slight uptick in output prices, although firms predict slower growth in costs but slightly stronger price increases over the coming year.