Dallas Fed: Texas Service Sector Growth Slows in October; Retail Sales Expand at Slower Pace
For immediate release: October 29, 2013
DALLAS—Texas service sector activity increased at a slower pace in October, 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 dipped from 8.9 to 5.3.
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 in October. The employment index edged up, indicating the pace of hiring picked up, but the hours worked index fell into negative territory, suggesting shorter workweeks.
Perceptions of broader economic conditions reflected less optimism in October. The general business activity index declined from 14 to 6.4.
Indexes of future service sector activity 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 grew in October, according to business executives responding to the Texas Retail Outlook Survey. However, the sales index fell from 16.5 to 7.9, suggesting slower growth.
Indexes of future retail sector activity fell but remained in solid positive territory this month.
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