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Texas Service Sector Activity Expanded at a Slower Pace in January, According to Dallas Fed Survey

For immediate release: January 27, 2015

Texas Manufacturing Activity Stalls in January, Says Dallas Fed Survey; Outlook Worsens

DALLASTexas service sector activity expanded at a slower pace in January, 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—dropped from 22.2 in December to 12.1 in January, its lowest reading in 11 months.

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 slower employment growth and slightly longer workweeks. The employment index fell from 14.3 to 5.8 in January. The hours worked index moved down from 7.2 to 1.3 in January.

Perceptions of broader economic conditions were mixed in January. The general business activity index plunged into negative territory to -2.8, its lowest reading since October 2011.

Indexes of future service sector activity 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 increased at a slower pace in January, according to business executives responding to the Texas Retail Outlook Survey. The sales index remained positive but fell sharply from 24.3 to 10.6 in January, its lowest reading in 11 months.

Indexes of future retail sector activity remained in solid positive territory this month.

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Media contact:
Justin Jones
Phone: (214) 922-5449
Email: justin.jones@dal.frb.org