Texas Service Sector Expansion Slows in Dec.

The Texas service sector expanded in December, though at a slower pace than it did in November, according to the Federal Reserve Bank of Dallas’ Texas Service Sector Outlook Survey, released Wednesday.

The survey’s revenue index slid to 9 from 14.

Index readings above zero show expansion, while numbers below zero indicate contraction.

The employment index jumped to 8.8, its highest reading in nine months, from 5.5, while indicators of workweeks showed a slight increase.

“Perceptions of general business conditions remained positive in December,” according to the survey. “Indexes of future service sector activity generally improved from last month, and expectations regarding future business conditions were more optimistic.”

Retail sales eased slightly, but indicated a fifth consecutive month of sales increases. Inventories gained.

“Indexes of future retail sector activity rose further into positive territory in December, while the index of future company outlook improved sharply,” the survey noted.

The service sector accounts for 59% of Texas’ economy and employs nearly 7 million people.

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