FX.co ★ Services in 5th District See Steeper Decline

The Fifth District Survey of Service Sector Activity indicated signs of a downturn in May 2025. The revenues index experienced a decline, slipping to -11, which is the lowest since last August, compared to -7 in April. However, there was a slight improvement in the demand index, which rose from -12 to -8 in May. Both the future revenues and demand indexes saw a modest increase, reaching 5 and 2, respectively. On a positive note, the local business conditions index improved, rising from -30 in April to -18 in May, although it remains negative. The future outlook for local business conditions also saw improvement, increasing from -29 to -18 in May, yet still reflecting a negative sentiment. Meanwhile, the current employment index dropped to 0 from 8 in May, but the forward-looking employment index experienced a notable rise, reaching 11 from 1. The wages index climbed to 20, with businesses continuing to foresee wage increases over the next six months. The average growth rates for both prices paid and prices received remained relatively stable in May; however, businesses anticipate an acceleration in price growth over the following 12 months.