FX.co ★ US 5th District Service Sector Activity Contracts in March

In March 2025, the Fifth District Survey of Service Sector Activity revealed a deceleration, as indicated by a decline in the revenues index to -4 from February's 11. The demand index also decreased, dropping to -6 from 13; however, it remained above zero. While future revenues and demand indexes saw reductions, they still reflected general optimism among firms for the forthcoming six months. Conversely, the local business conditions index experienced a significant drop to -14 in March from 1 in February, and firms displayed reduced optimism concerning future business conditions, with the index slipping to -5 from 8. The current employment index saw a slight decrease, moving to 3 from 7, while the forward-looking employment index fell to 12 from 27. The wages index experienced a slight decline to 19, although most firms anticipate raising wages in the coming six months. Meanwhile, the average growth rate of prices paid declined slightly, with firms expecting price growth to remain stable or potentially increase over the next year.