For immediate release: November 1, 2011
Dallas Fed: Texas Service Sector Activity Expands at a Slower Pace; Retail Sales Increase
DALLAS—Texas service sector activity increased in October, according to the Federal Reserve Bank of Dallas’ 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—fell from 14.1 to 4.7, which is indicative of slower revenue growth.
Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contraction.
Labor market indicators reflect more hiring and longer workweeks, according to the survey.
Perceptions of general business conditions were mixed in October. The general business activity index remained negative for the sixth month in a row, but the pace of deterioration slowed. The company outlook index moved back into positive territory after two months of negative readings.
The 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 October, according to the survey; however, the volatile sales index fell from 18.6 to 9.2, which is indicative of slower sales growth.
Indexes of future retail sector activity moved further into positive territory in October.
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