Texas Service Sector Activity Increases, Optimism Grows in November, Says Dallas Fed Survey
For Immediate Release: Nov. 29, 2016
DALLAS—Texas service sector activity increased in November, according to the Federal Reserve Bank of Dallas’ Texas Service Sector Outlook Survey (TSSOS).
The revenue index—a key measure of state service sector conditions— rose from 9.9 in October to 13.7 in November.
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 8.2 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 faster employment growth and unchanged workweeks this month. The employment index moved up from 2.7 to 9.2. The hours worked index edged up from –1.4 to a reading near zero.
Perceptions of broader economic conditions reflected more optimism in November. The general business activity index advanced from 3.0 to 12.6. The company outlook index jumped from a reading near zero to 15.6.
Expectations regarding future business conditions also reflected more optimism in November. The index of future general business activity soared 20 points to 29.1. The index of future company outlook rose sharply from 12.2 to 32.6. Indexes of future service sector activity, such as future revenue and employment, 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 November, according to business executives responding to the Texas Retail Outlook Survey. The sales index moved back into expansionary territory, surging from −6.6 in October to 13.2 in November.
Retailers’ perceptions of broader economic conditions improved markedly in November. The general business activity index rose sharply from –5.1 to 10.1. The company outlook index jumped 19 points to 13.5.
Indexes of future retail sector activity also improved in November.
Media Contact: Justin Jones
Federal Reserve Bank of Dallas
Phone: (214) 922-5449