Texas Service Sector Improves Notably in September, According to Dallas Fed Survey
For immediate release: September 30, 2014
DALLAS—Texas service sector activity expanded in September, 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 21 in August to 26.9 in September, its highest reading in more than six years.
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 slightly slower employment growth and longer workweeks. The employment index edged down in September but remained positive. The hours worked index turned slightly more positive this month.
Perceptions of broader economic conditions reflected more optimism in September. The general business activity index moved up from 22.8 in August to an all-time high of 27.5 in September.
Indexes of future service sector activity remained in solid positive territory 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 again in September, according to business executives responding to the Texas Retail Outlook Survey. The sales index surged from 20.6 in August to 35.5 in September, its highest reading in seven years.
Indexes of future retail sector activity remained in positive territory this month.
Federal Reserve Bank of Dallas