For immediate release: July 26, 2011
Dallas Fed Survey: Texas Service Sector Activity Strengthens; but Retail Sales Flat
Link to seasonally adjusted survey: http://www.dallasfed.org/research/surveys/tssos/2011/1107/tssos1107.cfm
DALLAS—Texas service sector activity increased in July, according to the Federal Reserve Bank of Dallas’ Texas Service Sector Outlook Survey.
The revenue index—key measure of state service sector conditions—climbed from 6.4 to 8.8, with 31 percent of respondents noting revenue increased from June.
Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contractions.
Labor market indicators continued to reflect some hiring and slightly longer workweeks. The July employment index edged up, although two-thirds of respondents noted no change in employment.
Price and wage pressures were little changed on balance in July, and the company outlook improved.
The survey also found that retail sales were flat in July, and retailers’ sentiments about the broader economy worsened sharply.
The general business activity index in the retail survey posted its fourth consecutive negative reading, falling to -16.4, and the company outlook index came in at -6.9, its first negative reading since August 2010.
A quarter of retail survey respondents said their outlook had worsened from the prior month compared with 18 percent who noted their outlook had improved.
Retail prices and wages continued to climb in July albeit at a diminished pace.
The Texas Service Sector Outlook 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 almost seven million workers.
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