Federal Reserve Bank of Richmond Fifth District Non-Manufacturing Revenues Index
The Richmond Fed Services Revenues Index tracks whether service-sector firms in the Fifth District report higher or lower revenues than in the previous month. It is a monthly survey-based measure of regional non-manufacturing activity.
Overview
The series is part of the Richmond Fed's non-manufacturing survey, which was formerly called the service sector survey. Respondents report changes in revenues and other business indicators, and the Richmond Fed converts responses into diffusion indexes. A positive reading generally means more firms reported rising revenues than falling revenues; a negative reading means the reverse.
Why traders watch it
Services are a large share of the U.S. economy, so traders use regional services surveys as early clues about demand, employment and inflation conditions before broader national data are released.
How to interpret the result
A stronger-than-expected revenues index may suggest healthier regional service activity and demand. A weaker-than-expected reading may suggest softer conditions, particularly if demand, employment and local business conditions also weaken.