The Richmond Fed Services Revenues index fell -15 pts to -4 in March, while the Demand index dropped -19 pts to -6, both reflecting service sector weakness.

• Local Business Conditions weakened sharply, down -15 pts to -14, and expectations turned negative, dropping -13 pts to -5.
• CapEx decreased -10 pts to -9, with Equipment & Software Spending flat at 0 (down -8 pts MoM).
• The Employment index eased 4 pts to 3, and forward-looking employment expectations fell -15 pts to 12.
• Prices Paid moderated to 5.18% YoY (from 5.26% YoY), while Prices Received rose to 3.68% YoY (from 3.31% YoY).
• Firms’ wage expectations softened slightly, with the Wages index down -5 pts to 19.