For immediate release: November 29, 2011
Dallas Fed Survey: Texas Service Sector Activity Continues to Grow; Retail Sales Pick Up in November
DALLAS—Texas service sector activity increased in November, 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 sharply from 4.7 to 14, with 31 percent of respondents noting revenue increased from October.
Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contraction.
Labor market indicators reflect modest hiring and slightly longer workweeks. The employment index edged up from 4.7 to 5.5, its best reading in seven months, although the great majority of respondents noted no change in employment.
Perceptions of general business conditions improved markedly in November. The general business activity index showed its first positive reading in seven months.
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 November, according to business executives responding to the retail portion of the survey. The volatile sales index rose from 9.2 to 12.8, marking four consecutive months of sales increases. Inventories rose sharply.
Indexes of future retail sector activity remained in solid positive territory in November.
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