For immediate release: June 28, 2011
Dallas Fed Survey: Texas Service Sector Activity Increased in June; Retail Sales Also Rose
DALLAS—Texas service sector activity increased in June, according to business executives responding to the Texas Service Sector Outlook Survey (TSSOS).
The survey is conducted monthly by the Dallas Fed to obtain a timely assessment of activity in the state’s service sector, which represents 59 percent of the state economy and employs close to 7 million workers.
The TSSOS revenue index—a key measure of state service sector conditions—rose from 1.6 to 6.4, with 30 percent of respondents noting that revenue increased from May.
Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contraction.
Labor market indicators continued to reflect some hiring and slightly longer workweeks.
Respondents were pessimistic about the direction of the broader economy this month. The company outlook index showed its first negative reading since September 2009, with about one-fifth of respondents reporting their outlook had worsened from last 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 in June, according to business executives responding to the retail portion of the survey. After posting a negative May reading, the volatile sales index rose to 4.6 this month, and inventories fell.
Indexes of future retail sector activity remained in positive territory in June, with the exception of part-time employment. Future business activity and company outlook indexes improved.
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