Service sector

Services-sector activity jumped at record pace in May, New York Fed survey shows

A waiter fills a glass at the Mediterranean seafood restaurant Estiatorio Milos at the Hudson Yards as restaurants have resumed indoor dining at 25% capacity due to the coronavirus disease (COVID-19) in Manhattan , New York, U.S. September 30, 2020. REUTERS/Andrew Kelly

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May 18 (Reuters) – The services sector in the New York area saw business activity increase at a “record pace” in early May, according to a survey of business leaders released by the Federal Reserve Bank of New York on Tuesday. York.

The survey’s overall business activity index rose nine points to 38.8, but not all businesses posted gains.

“Just over half of those surveyed said conditions had improved over the month, while 12% said conditions had deteriorated,” according to the report.

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The New York area has been hit hard by shutdowns, reduced travel and the shift to remote working during the pandemic, but the report showed conditions are improving as the economy recovers.

Optimism for the future also surged in early May, with the index for future business activity and future employment both hitting record highs of 67.8 and 51.8, respectively.

Employment rose “moderately” and there was a “small pick-up” in wage growth. The survey, which covers businesses in New York, New Jersey and southwestern Connecticut, was conducted between May 3 and May 10.

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Reporting by Jonnelle Marte; Editing by Andrew Heavens

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