South By North Strategies, Ltd.

From the Federal Reserve Bank of Richmond’s latest survey of service-sector activity in the South Atlantic (District of Columbia, Maryland, North Carolina, South Carolina, Virginia and West Virginia):

Activity in the service sector improved in February, notably with respect to employment, according to the latest survey by the Federal Reserve Bank of Richmond. Retail sales advanced at a slower pace, although shopper traffic increased. Big-ticket sales remained weak, but pulled back from last month’s sharp drop. Retail inventory accumulation nearly matched January’s rise. Revenues slowed abruptly at non-retail services firms. Retailers expected weak demand for their goods during the next six months. In contrast, non-retail services providers anticipated stronger demand for their services over that period.
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Labor market indicators strengthened across the broad service sector, with a jump in the number of employees and widespread wage increases.
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Price change in the overall service sector sped up slightly, with most of that pick-up in retail. Looking ahead six months, expectations were for continued mild acceleration.