Dallas Fed: Texas Service Sector Activity Strengthens in September; Retail Sales Increase
For immediate release: September 25, 2012
DALLAS—Texas service sector activity picked up pace in September, 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 from 10 to 15, its highest reading since March, with 33 percent of respondents noting revenues increased from August.
Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contraction.
Labor market indicators reflected stronger labor demand growth and slightly longer workweeks. Employment grew at a faster pace in September, with the index increasing from 6.3 to 9.8.
Perceptions of general business conditions improved in September. The general business activity index rose from 8.4 to 10.1.
Indexes of future service sector activity rose in September.
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 September, according to business executives responding to the Texas Retail Outlook Survey. The sales index rose from 17.7 to 22.3, its highest reading in 12 months. Inventories rose.
Indexes of future retail sector activity remained in positive territory, and most of them increased in September.
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