Texas Service Sector Increases at a Slower Pace in October, According to Dallas Fed Survey
For immediate release: October 28, 2014
DALLAS—Texas service sector activity continued to expand in October, 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—declined from 26.9 in September to 14 in October.
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 reflected continued hiring and longer workweeks. The employment index held steady in October. The hours worked index inched down this month.
Perceptions of broader economic conditions reflected less optimism in October. The general business activity index dropped from 27.5 in September to 18 in October.
Indexes of future service sector activity fell but remained in solid positive territory 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 October, but at a slower pace, according to business executives responding to the Texas Retail Outlook Survey. The sales index plunged from 35.5 in September to 16.7 in October.
Indexes of future retail sector activity remained in solid positive territory this month.
Federal Reserve Bank of Dallas