Dallas Fed: Texas Service Sector Activity Picks Up Pace in August; Retail Sales Increase
For immediate release: August 28, 2012
DALLAS—Texas service sector activity increased in August, according to the Federal Reserve Bank of Dallas’ Texas Service Sector Outlook Survey.
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 2.4 to 10, with 30 percent of respondents noting revenues increased from July.
Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contraction.
Labor market indicators reflected modest labor demand growth, but no change in the workweek. Employment grew at a slower pace in August, with the index falling from 8.6 to 6.3.
Perceptions of general business conditions improved in August. The general business activity index held steady at 8.4, and the company outlook index moved up from 2 to 4.7.
Most indexes of future service sector activity rose in August.
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 August, according to business executives responding to the Texas Retail Outlook Survey. After posting a negative July reading, the sales index rose sharply from -3.6 to 17.7, its highest reading in five months. Inventories rose.
Indexes of future retail sector activity generally increased and remained in positive territory in August.
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