Texas Service Sector Activity Expands in June, Says Dallas Fed Survey
Texas retail sales also grew, but at a slower pace, survey finds
For Immediate Release: June 27, 2017
DALLAS—Texas service sector activity continued to expand in June, but at a slightly slower pace, 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— ticked down one point to 14.8 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 about 8.4 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 longer workweeks this month. The employment index moved up four points to 11.9. The hours worked index rose slightly from 2.1 to 4.3.
Perceptions of broader economic conditions reflected more optimism in June. The general business activity index edged up from 7.7 to 10.1. The company outlook index advanced seven points to 14.2, its highest reading in five months.
Respondents’ expectations regarding future business conditions also reflected more optimism in June. The index of future general business activity inched up from 18.9 to 21.1. The index of future company outlook rose three points to 26.2.
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 grew in June at a slower pace than last month, according to business executives responding to the Texas Retail Outlook Survey. The sales index fell from 10.1 in May to 3.5 in June, its lowest reading in eight months.
Labor market indicators were mixed this month. The employment index rebounded to positive territory to a reading of 10.1, while the hours worked index remained in negative territory, falling one point to –2.7.
Retailers’ perceptions of broader economic conditions improved in June. The general business activity index surged 12 points to 9.6, its highest reading in five months. The company outlook index also jumped 12 points coming in at 12.8.
Federal Reserve Bank of Dallas
Phone: (214) 922-6748