Texas Service Sector Activity Strengthens Further in July, Says Dallas Fed Survey
For immediate release: July 28, 2015
DALLAS—Texas service sector activity picked up 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 13.2 in June to 19.1 in July.
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 5.6 in June to 10.1, suggesting faster employment growth in July. The hours worked index rose from a reading near zero to 5.3 in July, reflecting longer workweeks.
Perceptions of broader economic conditions reflected more optimism in July. The general business activity index moved up from 4.1 in June to 7.9 in July.
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 continued to reflect expansion in July, according to business executives responding to the Texas Retail Outlook Survey. The sales index remained positive but edged down from 13.1 in June to 11.5 in July.
Indexes of future retail sector activity remained in solid positive territory this month.
Federal Reserve Bank of Dallas