Texas Service Sector Activity Strengthens Further, Business Conditions Improve in July, According to Dallas Fed Survey
For immediate release: July 29, 2014
DALLAS—Texas service sector activity climbed 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 16.9 to 21.5, its highest level since February 2012.
The survey is conducted monthly by the Dallas Fed to obtain a timely assessment of activity in the state’s service sector, which represents almost 70 percent of the state economy and employs close to 7.6 million workers.
Positive readings in the survey generally indicate expansion of service sector activity, while readings below zero generally indicate contraction.
Labor market indicators suggested continued positive, but somewhat slower, growth in July. The employment index remained positive but plunged 12 points to 4.6 in July, indicating employment rose at a slower pace than in June.
Perceptions of broader economic conditions reflected more optimism in July, rising to multiyear highs. The general business activity index edged up from 21.1 to 22.4, reaching its all-time high.
Indexes of future service sector activity reflected more optimism this month.
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 grew in July, according to business executives responding to the Texas Retail Outlook Survey. The sales index rose to 22 in July, reaching its highest level in eight months.
Indexes of future retail sector activity reflected more optimism this month.
Federal Reserve Bank of Dallas