Kansas City Services Survey

Data Services

Source: Kansas City Fed
Source Link: https://www.kansascityfed.org/
Frequency: Monthly
Next Release(s): August 29th, 2025 11:00 AM

Latest Updates

The Kansas City Fed’s Tenth District Services Composite Index declined to -5 in July (from 3 in June), reflecting modest contraction in regional service-sector activity.
- General revenue/sales fell sharply to -8 (from 2), signaling broad weakness in demand.
- Employment and employee hours both dropped to -6 (from 6), pointing to softer labor conditions.
- Part-time/temporary employment declined to -15 (from -2), the lowest since early 2023.
- Input prices eased slightly to 39 (from 43), while selling prices held steady at 17.
- Capital expenditures edged up to 6 (from 4), indicating modest investment momentum.
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The Kansas City Fed’s Tenth District Services Composite Index declined to 3 in June from 11 in May, indicating slower but continued growth in regional service-sector activity.
- General revenue/sales dropped sharply to 2 (from 14), pointing to broad deceleration in business activity.
- Employment and employee hours both softened, falling to 6 (from 10) and 3 (from 9), respectively.
- Capital expenditures plunged to 4 (from 19), signaling weaker investment appetite.
- Input prices eased to 39 (from 43), while selling prices edged down to 16 (from 18), both still historically elevated.
- Selling price expectations have fallen back to where they were in December 2024, with the index dropping -14 pts to 26
- Only 15% of firms paused capital investments due to uncertainty, and just 20% reported exposure to international trade. Most firms have not made major adjustments to staffing or investment plans.
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The Kansas City Fed’s Tenth District Services Composite Index rose 8 pts to 11 in May, the highest in over a year, indicating a moderate acceleration in service-sector activity across the region.
- General revenue/sales surged to 14 (from 4 in April), the highest level since July 2023.
- Employment and employee hours indexes rose to 10 and 9, respectively, signaling broad-based hiring momentum after recent softness.
- Capital expenditures jumped to 19 (from 9), reflecting a rebound in business investment plans.
- Input prices eased slightly to 43 (from 49 in April), but selling prices increased to 18—marking the highest level since March 2023.
- Credit conditions remained negative at -4, the 12th consecutive month of contraction, pointing to persistent tightening in access to credit.
- Expectations for future activity remained elevated, though over half of firms indicated no change to their 2025 hiring or capex plans. Notably, a third of firms are changing prices more frequently compared to last year, underscoring ongoing pricing uncertainty amid shifting tariff and supply conditions.
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The Kansas City Services Composite Index increased 3 pts to 3 in April, the highest so far in 2025.
- The YoY Consumer Services and Business Services indexes increased 9 pts to 10 and 8 pts to 12, respectively.
- The Sales index was unchanged at 4 indicating a stable growth rate in revenues.
- The Employment and Hours Worked index flipped from a contraction to a slight increase.
- The Input Prices and Selling Prices indexes both increased to their highest in more than a year, up 8 pts to 49 and up 8 pts to 16 respectively.
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The Kansas City Fed Services Composite Index was unchanged at 0 in March, down from 2 in February but up from -4 in January.
- General revenue/sales improved to 4 (from -1), but employment fell to -5 (from 3), with hours worked at -10, the lowest since May 2020.
- The YoY composite index declined to 2 (from 6), with employment falling YoY for the first time since April 2024.
- Consumer services remained flat YoY at 1, while business services slowed to 4 (from 14 in February).
- Over half of firms reported lower profit margins in the past 12 months, and 41% expect margins to rise slightly over the next year.
- 60% of manufacturing firms are considering strategy changes in response to economic conditions.
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The Kansas City Fed Services Index increased 6 pts to 2 in February.
- Growth in the business sector was primarily driven by real estate and professional services.
- The consumer sector was mostly flat, with declines in wholesale and autos and increases in education and health.
- General revenue/sales were mostly flat this month, increasing from -8 to -1.
- Input prices were growing at a very fast rate with the index at 40 and only 2% of firms reporting a decline in costs MoM. The YoY index was even higher at 74 where 80% of firms reported higher costs vs a year ago.
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