Dallas Fed: Texas Service Sector Activity Expands in February but at a Slower Pace
For immediate release: February 25, 2014
DALLAS—Texas service sector activity continued to reflect expansion in February, 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 from 18.1 to 9.8.
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 improved this month. The employment index was largely unchanged at 11.1 in February, indicating employment rose at the same pace as in January. The hours worked index returned to positive territory, suggesting longer workweeks.
Perceptions of broader economic conditions reflected less optimism in February. The general business activity index dropped 10 points from January to 6.8 in February.
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 signaled continued growth in February, albeit at a slower pace, according to business executives responding to the Texas Retail Outlook Survey. The sales index remained in positive territory but fell from 20.7 to 5, its lowest reading in seven months.
Indexes of future retail sector activity remained in solid positive territory this month.
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