FX.co ★ US Fifth District Services Stay Resilient

Fifth District service sector activity remained relatively solid in April. The revenues index was unchanged at 9, while the demand index declined to 10 from 21 but stayed in positive territory, indicating continued expansion. Expectations were still strong, with forward-looking indexes for both revenues and demand firmly in positive territory. The local business conditions index slipped to -6 from 2, and the outlook index edged down slightly to 6. Employment conditions softened modestly, as the current employment index fell to 6 from 9, although the forward-looking employment measure rose to 25, signaling optimism about hiring. Wage growth remained stable, and firms continued to anticipate further increases. Price pressures picked up slightly but are expected to ease going forward.