Dallas Fed: Texas Service Sector Growth Slows in June; Retail Sales Fall
For immediate release: June 25, 2013
DALLAS—Texas service sector growth slowed in June, 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—remained positive but fell 5 points to 6.8.
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 were mixed. The employment index edged down but remained in positive territory, and the hours worked index turned slightly negative.
Perceptions of broader economic conditions reflected more optimism in June. The general business activity index advanced from 3.8 to 12.2, and the company outlook index rose slightly.
Indexes of future service sector activity also reflected more optimism in June.
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 fell in June, according to business executives responding to the Texas Retail Outlook Survey. The sales index plunged over 15 points back into negative territory to –4.1.
Indexes of future retail sector activity increased and remained in solid positive territory in June.