Texas Service Sector Activity Strengthens Further, Optimism Increases in December, Says Dallas Fed Survey
For Immediate Release: Dec. 28, 2016
DALLAS—Texas service sector activity increased in December, 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 13.7 in November to 20.6 in December.
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 somewhat slower employment growth and longer workweeks this month. The employment index dipped from 9.2 to 7.8. The hours worked index edged up from a reading near zero to 4.1.
Perceptions of broader economic conditions reflected more optimism in December. The general business activity index advanced from 12.6 to 19.4. The company outlook index rose five points to 20.6.
Expectations regarding future business conditions reflected more optimism in December. The index of future general business activity jumped to an all-time high reading of 39.8. The index of future company outlook moved up from 32.6 to 39, its highest reading since July 2014. Indexes of future service sector activity, such as future revenue and employment, also reflected more 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 picked up in December, according to business executives responding to the Texas Retail Outlook Survey. The sales index rose six points to 19.2.
Retailers’ perceptions of broader economic conditions reflected more optimism in December. The general business activity index rose from 10.1 to 19.4. The company outlook index climbed 10 points to 23.7.
Indexes of future retail sector activity also reflected more optimism this month.
Media Contact: Jennifer Chamberlain
Federal Reserve Bank of Dallas
Phone: (214) 922-6748