Texas Service Sector Activity Strengthens in June, Says Dallas Fed Survey
For immediate release: June 30, 2015
DALLAS—Texas service sector activity improved in June, 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—advanced from 3.8 in May to 13.2 in June.
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 unchanged workweeks. The employment index moved down from 8.9 in May to 5.6 in June. The hours worked index edged down to a reading near zero this month, indicating average hours worked in June were the same as in May.
Perceptions of broader economic conditions continued to reflect some optimism in June. The general business activity index rose to 4.1 in June.
Indexes of future service sector activity continued to reflect 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 climbed in June, according to business executives responding to the Texas Retail Outlook Survey. The sales index surged back into positive territory in June, jumping almost 24 points to 13.1.
Indexes of future retail sector activity remained in solid positive territory this month.
For this month’s Texas Business Outlook Surveys, respondents were also asked supplemental questions on the impact of lower energy prices and concerns affecting the outlook of their company.
Federal Reserve Bank of Dallas