Service sector

Dallas Fed Survey: Texas Service Sector Growth Reinforces in June | KLBK | KAMC

DALLAS (PRESS RELEASE) — The following is a press release from the Federal Reserve Bank of Dallas:

Texas’ service sector showed continued growth in June as incomes rose and labor market indicators point to continued hiring, according to business executives responding to the Texas Service Industry Outlook Survey.

“Price and wage pressures were mixed but remained at record highs,” said Dallas Fed associate economist Christopher Slijk. “However, business sentiment turned pessimistic as the outlook plunged and uncertainty rose to levels last seen in mid-2020.”

Key lessons from the service sector survey:

  • The revenue index rose three points to 9.4, with 31% of businesses reporting a monthly increase in revenue.
  • Labor market indicators continue to point to steady growth in employment and hours worked.
  • Price and wage pressures remained close to observed highs.
  • General business activity and the outlook have moved sharply into negative territory, indicating expectations of a deteriorating business climate.

Retail sales deteriorate in Texas in June

The survey also includes a component called Texas Retail Outlook Surveywhich only uses information provided by respondents from the retail and wholesale sectors.

“Retailers in Texas continued to see declining sales in June, marking four straight months of deteriorating business,” Slijk said. “Retail sentiment has fallen to a two-year low, and future activity indicators suggest weaker growth expectations in the second half of the year.”

Key lessons from the retail trade survey:

  • The retail sales index remained negative at -11.0, with 36% of retailers noting monthly declines in sales.
  • Inventories remained stable for a third consecutive month.
  • Retailer sentiment turned very pessimistic as business activity and business outlook indices fell to their worst readings since the start of the pandemic.

For this month’s survey, executives in the manufacturing and service industries responded to additional questions on the labor market and price pressures.

The Dallas Fed conducts the survey monthly to get a timely assessment of activity in the state’s service sector, which accounts for nearly 70% of the state’s economy and employs approximately 9.5 million workers. workers.

For more information on the survey, visit DallasFed.org.

(Federal Reserve Bank of Dallas press release)