The Federal Reserve Bank of Kansas City published its February Services Survey, reporting that services activity in the Tenth District increased only slightly, with growth concentrated in the business sector while the consumer sector remained essentially flat. Expectations for future services activity stayed expansionary. Price pressures remained a key feature of the results, with input price increases continuing to outpace output price gains; nearly half of firms reported passing through only 0–20% of cost increases to customers. The monthly survey tracks indicators such as sales, revenue, employment and capital spending across a range of services industries. The February release also applies new seasonal adjustment factors using Census X-13 ARIMA-SEATS, leading to slight revisions in historical indexes, and these new seasonal factors will be used throughout 2025.
Federal Reserve Bank of Kansas City 2025-02-28
Federal Reserve Bank of Kansas City releases February Services Survey showing slight Tenth District growth and persistent input cost pressure
The Federal Reserve Bank of Kansas City's February Services Survey shows slight growth in Tenth District services activity, driven by the business sector, while the consumer sector remained flat. Price pressures persist, with input costs rising faster than output prices, and many firms passing only a small portion of cost increases to customers. The survey includes revised historical indexes due to new seasonal adjustment factors using Census X-13 ARIMA-SEATS.