Dallas Fed: Texas Service Sector Growth Continues in August; Retail Sales Growth Picks up
For immediate release: August 27, 2013
DALLAS—Texas service sector activity expanded in August, 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—edged up from 12.7 to 13.6, its highest reading in five months.
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 reflected continued hiring and longer workweeks. The employment index remained positive but dipped slightly, suggesting hiring proceeded but at a slower pace than in July. The hours worked index moved up into positive territory, but the great majority of firms noted no change in workweeks.
Perceptions of broader economic conditions continued to reflect optimism in August. The general business activity index ticked up from 15.3 to 16.7, its best reading in 18 months.
Indexes of future service sector activity moved down 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 climbed again in August, according to business executives responding to the Texas Retail Outlook Survey. The sales index advanced from 12.6 to 21.1, its highest reading in 11 months.
Indexes of future retail sector activity increased and remained in solid positive territory in August.
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