The bad news, is that the service sector’s growth slowed.
Activity in the service sector improved in February, notably with respect to employment, according to the latest survey by the Federal Reserve Bank of Richmond. Retail sales advanced at a slower pace, although shopper traffic increased. Big-ticket sales remained weak, but pulled back from last month’s sharp drop. Retail inventory accumulation nearly matched January’s rise. Revenues slowed abruptly at non-retail services firms. Retailers expected weak demand for their goods during the next six months. In contrast, non-retail services providers anticipated stronger demand for their services over that period.