Dallas Fed: Texas Service Sector Activity Increases at a Slower Pace in May
For immediate release: May 28, 2014
DALLAS—Texas service sector activity continued to reflect expansion 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—remained positive but fell from 18.5 to 13.1.
The survey is conducted monthly by the Dallas Fed to obtain a timely assessment of activity in the state’s service sector, which represents almost 70 percent of the state economy and employs close to 7.6 million workers.
Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contraction.
Labor market indicators continued positive but somewhat slower growth in May. The employment index dipped from 16.4 to 13.8 this month, indicating employment rose at a slower pace than in April. The hours worked index remained positive but ticked down a point to 4.9.
Perceptions of broader economic conditions continued to reflect optimism in May. The general business activity index inched down 1 point from 11.3 in April to 10.3 in May.
Indexes of future service sector activity remained in solid positive territory this month.
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 increased for the eleventh consecutive month in May, albeit at a slower pace than last month, according to business executives responding to the Texas Retail Outlook Survey. The sales index edged down from 18.3 in April to 16.4 in May.
Indexes of future retail sector activity remained in solid positive territory this month.
Federal Reserve Bank of Dallas
Phone: (214) 922-5288