The Fifth District Survey of Service Sector Activity showed modest improvement in July 2025, according to the Richmond Fed. The revenues index rose to 2 from an upwardly revised -1, while the demand index climbed to 5 from -4. Expectations remained positive, with future revenues and demand indexes holding steady. Local business conditions improved slightly, with the current index rising to -8 from -14, and the future index turning positive at 6 from -5. Employment conditions softened, as the current employment index edged down to 0 from 2, and the future employment index dropped to 4 from 15. The wages index ticked down to 18, though firms still expect to raise wages in the next six months. Price dynamics were mixed: the growth rate of prices paid slowed slightly, while prices received rose modestly. Firms anticipate stable input costs but expect the pace of price increases for their own goods and services to rise over the next year.