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Dallas Fed: Texas Service Sector Expands in June; Retail Sales Growth Slows

Dallas Fed: Texas Service Sector Expands in June; Retail Sales Growth Slows

Link to seasonally adjusted survey: http://www.dallasfed.org/microsites/research/surveys/tssos/2012/1206/tssos1206.cfm

DALLASTexas service sector activity increased in June, according to business executives responding to the Texas Service Sector Outlook Survey (TSSOS).

The survey is conducted monthly by the Dallas Fed to obtain a timely assessment of activity in the state’s service sector, which represents 59 percent of the state economy and employs close to 7 million workers.

The TSSOS revenue index—a key measure of state service sector conditions—held steady at 10.9, suggesting revenue growth in June was about the same as last month.

Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contraction.

Perceptions of broader economic conditions were mixed in June. The general business activity index edged up from 5.3 to 7.3 after falling for three consecutive months, but the company outlook index posted its lowest reading in nine months, moving down to 2.6 from 8.5.

Upward pressure on selling prices continued easing, while wages rose faster in June. The selling prices index came in at 4.6, its lowest reading since December 2011, while the wages and benefits index rose further into positive territory.

Most indexes of future service sector activity stayed positive but fell in June.

The index of future general business activity fell to 5.8, its lowest reading since September 2011.

TSSOS also includes a component called the Texas Retail Outlook Survey, which uses information from respondents in the retail and wholesale sectors only.

Retail sales increased at a slower pace in June, according to business executives responding to the Texas Retail Outlook Survey. The sales index fell from 10.9 to 7, its lowest reading since July 2011. Inventories rose.

Indexes of future retail sector activity generally fell in June but remained in positive territory.

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Media contact:
Alexander Johnson
Phone: (214) 922-5288
e-mail: alexander.johnson@dal.frb.org

 

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