Business Service Sector Declined Significantly

After steadying last month, activity in the service sector declined significantly, according to firms responding to the Federal Reserve Bank of New York’s August 2020 Business Leaders Survey.

The surveys headline business activity index fell fifteen points to -17.1 The business climate index was little changed at -74.1, indicating that the vast majority of firms still viewed the business climate as worse than normal.

Employment levels continued to decline, though at a slower pace than in recent months.

Firms turned pessimistic about the six-month outlook, and expected the business climate to be worse than normal in the months ahead.

By Terry Grennon

Asset Allocation Strategist