By Colin Kellaher
Services activity in the middle of the U.S. expanded somewhat in April, and expectations for future activity remained steady, according to a monthly survey by the Federal Reserve Bank of Kansas City released Friday.
The Tenth District Services Survey's composite index, a weighted average of indexes covering revenue/sales, employment and inventory, came in at 9 in April, up from 7 in March but down from 12 in February. Readings above zero indicate expansion, while those below zero indicate contraction.
The Kansas City Fed said activity in the wholesale, retail and restaurant sectors grew in April, with contraction seen in the professional-services, healthcare and education sectors.
The bank said its index of expectations for future services activity rose to 2 in April from 1 in March, as firms surveyed said they expect heightened inventory levels will continue increasing amid steady sales in the next six months.
The Kansas City Fed's survey includes participants from such service industries as retail and wholesale trade, automobile dealers, real estate and restaurants. The survey provides information on current services activity in the Tenth District, which includes Colorado, Oklahoma, Wyoming, Nebraska, Kansas, the northern half of New Mexico and the western third of Missouri.
The bank's monthly manufacturing survey, released Thursday, showed that factory activity in the central U.S. slowed sharply in April, in a sign that high inflation and interest rates continue to weigh on output.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
04-26-24 1131ET
