FX.co ★ US 5th District Service Sector Contracts

The Federal Reserve Bank of Richmond's November 2025 Fifth District Service Sector Survey revealed a downturn in sector activity. The revenue index dropped to -4 from a previous 4, while demand levels remained stable at 4. Despite the current contraction, future revenue and demand projections improved and stayed positive. The local business conditions index decreased to -15 from -1, although future prospects showed improvement, rising to 4 from -3. Employment levels remained relatively static at 1, with a more optimistic outlook for hiring over the next six months, increasing to 24 from 14. The wages index slightly decreased to 12 from 17, indicating that firms continue to plan for wage increments. Both input and output price growth slowed, and businesses anticipate slower cost increases but foresee marginally stronger price gains over the coming year.