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):

Service sector activity slowed in December, according to the latest survey by the Federal Reserve Bank of Richmond. Big ticket sales dropped this month, contributing to a fall in retail revenues. Inventories rose slightly. In addition, shopper traffic diminished and retailers indicated a more negative outlook for sales over the next six months. At non-retail services businesses, revenues flattened. In contrast to retail merchants, services providers remained optimistic about business prospects in the first half of the new year.
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Labor indicators in the service sector weakened in December. The number of employees fell at both retail and non-retail establishments. While average wages grew on pace with a month earlier at services-providing firms, retail wages declined.
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Price growth in the broad service sector hovered near November’s moderate pace. However, survey respondents expected somewhat faster overall price growth during the next six months.