Texas Service Sector Activity Picks up in April, Says Dallas Fed Survey
DALLAS—Texas service sector activity increased in April, 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 10.7 in March to 14.6 in April, its highest reading this year.
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 improved this month. The employment index moved up from 4.2 in March to 7.9 in April, indicating hiring rose at a faster pace this month. The hours worked index advanced from negative territory in March to 4.7 in April.
Perceptions of broader economic conditions were mixed in April. The general business activity index rose from -4.6 in March but remained negative for a second month in a row at -1 in April.
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 improved notably in April, according to business executives responding to the Texas Retail Outlook Survey. The sales index gained 27 points to surge back into positive territory to 20.5 in April, its highest reading this year.
Indexes of future retail sector activity reflected more optimism this month.
Federal Reserve Bank of Dallas