Dallas Fed: Texas Service Sector Expands at a Slower Pace; Retail Sales Growth Holds Steady in May
For immediate release: May 30, 2012
DALLAS—Texas service sector activity increased in May, 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—fell from 12.6 to 10.1, suggesting growth continued slowing in May.
Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contraction.
Respondents were less optimistic about the broader economy than last month. The general business activity index moved down to 5.3, its lowest reading in seven months.
Upward pressure on prices and wages eased in May. The selling prices index fell from 9.7 to 5, its lowest reading since December 2011, while the wages and benefits index slipped from 16.8 to 13.8.
Indexes of future service sector activity remained in solid positive territory.
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 May, according to business executives responding to the Texas Retail Outlook Survey. The sales index held steady, coming in at 10.9 and marking 12 consecutive months of sales increases. Inventories rose at the slowest pace in four months.
Indexes of future retail sector activity increased in May.
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