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 picked up in July, according to the latest survey by the Federal Reserve Bank of Richmond. Retail sales rose sharply, despite lagging big-ticket sales and weaker shopper traffic. Retail inventories dropped. Non-retail services firms also reported stronger revenues this month. Looking ahead, survey participants expected stronger demand for goods and services through the end of the 2011 holiday season.
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Hiring in the broad service sector was flat, as retailers added employees at a faster pace, while hiring slackened at non-retail services providing firms. Growth in average wages prevailed across the board.
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Price changes in the broad service sector slowed compared to a month ago, with most of the change coming from slower retail price increases. For the six months ahead, survey respondents expected prices to accelerate from the July pace.