Dallas Fed: Texas Service Sector Growth Strengthens in July; Retail Sales Rebound
For immediate release: July 30, 2013
DALLAS—Texas service sector activity expanded in July, according to the Federal Reserve Bank of Dallas’ Texas Service Sector Outlook Survey.
The TSSOS revenue index—a key measure of state service sector conditions—rose from 6.8 to 12.7, indicating activity picked up pace this month.
The survey is conducted monthly by the Dallas Fed to obtain a timely assessment of activity in the state’s service sector, which represents 60 percent of the state economy and employs close to 7.3 million workers.
Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contraction.
Labor market indicators were mixed. The employment index moved further into positive territory, suggesting hiring increased. With more staff on hand, average workweeks shrunk, and the hours worked index moved slightly further into negative territory.
Perceptions of broader economic conditions reflected more optimism in July. The general business activity index rose from 12.2 to 15.3, and the company outlook index advanced further into positive territory.
Indexes of future service sector activity climbed further into 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 improved notably in July, according to business executives responding to the Texas Retail Outlook Survey. The sales index jumped back into positive territory to 12.6, its highest reading since January.
Indexes of future retail sector activity increased and remained in solid positive territory in July.
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