Dallas Fed: Texas Service Sector Growth Strengthened in May; Retail Sales Rebound
For immediate release: May 29, 2013
DALLAS—Texas service sector activity expanded in May, according to the Federal Reserve Bank of Dallas’ Texas Service Sector Outlook Survey.
The TSSOS revenue index—a key measure of state service sector conditions—rose from 6.1 to 11.8, indicating activity picked up pace this month.
The survey is conducted monthly by the Dallas Fed to obtain a timely assessment of activity in the state’s service sector, which represents 60 percent of the state economy and employs close to 7.3 million workers.
Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contraction.
Labor market indicators signaled continued growth, but at a slower pace. The employment and hours worked indexes both edged down but remained in positive territory.
Perceptions of broader economic conditions continued to reflect some optimism in May. The general business activity index was unchanged at 3.8, and the company outlook index remained positive but fell slightly.
Respondents’ expectations regarding future business conditions remained optimistic this month. The index of future general business activity and the index of future company outlook both pushed further positive.
Indexes of future service sector activity fell slightly but remained in solid positive territory.
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 improved notably in May, according to business executives responding to the Texas Retail Outlook Survey. The sales index climbed back into positive territory, gaining 16 points to reach 11.6.
Indexes of future retail sector activity decreased but remained in solid positive territory in May.
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