The Richmond Fed Services Revenues Index rose to 2 in July (from -1 in June), indicating a slight improvement in Fifth District service sector activity, while the Demand Index increased to 5 (from -4).

• Local Business Conditions improved to -8 (from -14), with future expectations turning positive at 6 (from -5).
• Employment held flat at 0 (from 2), and expected hiring weakened to 4 (from 15); the Wages Index ticked down to 18 (from 19).
• Prices Paid eased to 5.05% (from 5.17%), while Prices Received edged up to 3.29% (from 3.15%).
• Capital Expenditures remained weak at -10, though Equipment & Software Spending improved slightly to 2 (from -4).
• Firms expect little change in input cost growth, but anticipate higher prices received over the next 12 months.