The Richmond Fed Services Revenues index declined -4 pts to -11 in May, signaling a deeper contraction in regional service sector activity, while the Demand index improved slightly to -8 (from -12).

• Local Business Conditions rose to -18 (from -30), though still in contraction; the future outlook also improved to -18 (from -29).
• Employment index fell sharply to 0 (from 8), while future hiring expectations rose to 11 (from 1).
• The Wages index increased to 20 (from 13), with firms continuing to expect wage growth ahead.
• Prices Paid growth was stable at 4.97% (vs 4.89%), and Prices Received dipped slightly to 3.01% (vs 3.03%), with both expected to accelerate over the next year.