Survey: Activity in Texas service industry is picking up - San Antonio Express-News

cicingwos.blogspot.com

Activity in Texas’ service industry accelerated in September and retail sales climbed, a monthly survey by the Federal Reserve Bank of Dallas shows.

The revenue index — a key measure of the sector’s health — rose to 14, its highest reading since the start of the pandemic. Positive readings indicate an expansion of activity.

“Texas service sector activity rebounded sharply in September,” said Christopher Slijk, an associate economist at the Dallas Fed.

“Labor market indicators showed increases in employment and average hours worked, although a majority of services firms continued to note headcounts below February levels,” he added. “Perceptions of broader business conditions improved, and outlook uncertainty plateaued.”

On ExpressNews.com: San Antonio’s Convention Center hosts first major event since March shutdown

Retail sales jumped in September after two months of declines, with the sales index rising from -9.9 to 20.8.

Business leaders’ perceptions of industry conditions stayed positive, but they also expressed uncertainty about the upcoming election and the continuing effects of the pandemic. Some said they were struggling to hire employees.

“Uncertainty is the only constant,” an executive at an accommodation business told the Dallas Fed. “In the lodging and restaurant space, nothing will change until governments relax restrictions, and people regain confidence in air travel and public gatherings.”

A business leader at a motor vehicle and parts dealer said inventory is expanding as assembly plants increase operations, but there are supply-chain lags.

On ExpressNews.com: Outdoor furniture maker moving HQ from California to Texas

“Generally, we still believe there is a great deal of uncertainty as the election approaches,” they said. “Business failures in airlines, hotels, restaurants, retail and other affected industries are concerning.”

The Commerce Department hasn’t reported September retail sales yet, but August figures increased a seasonally adjusted 0.6 percent from July. Spending on furniture, electronics and clothing rose while grocery and sports, hobby and book purchases slid.

“Retail spending habits have remained largely consistent and stable these past few months since stores began to reopen,” said Jack Kleinhenz, chief economist at the National Retail Federation, a trade organization. “Some consumers likely reduced their spending with the end of the $600 supplemental unemployment benefits for those out of work, but a building-up of savings from that and other government cash helped support spending.”

SA Inc.: Get the best of business news sent directly to your inbox

“At this juncture, it is difficult to sort out how much economic activity is due to government support and how much is evidence of hardcore demand due to recent job gains,” he added. “August numbers might have been higher if not for small businesses struggling with reopening and the return to full operations.”

With online shopping continuing to surge and the holidays fast approaching, retailers are looking to hire thousands of seasonal workers to help with curbside and delivery orders.

Walmart is hiring 20,000 temporary employees in its e-commerce fulfillment centers and Best Buy is holding job fairs at its stores Saturday and Sunday to fill seasonal slots in areas such as sales, customer service and merchandising inventory.

Target is doubling the number of employees handling pick-up orders.

The companies declined to provide specific hiring figures for San Antonio.

madison.iszler@express-news.net

Let's block ads! (Why?)

"activity" - Google News
September 29, 2020 at 12:00PM
https://ift.tt/3cI5z0S

Survey: Activity in Texas service industry is picking up - San Antonio Express-News
"activity" - Google News
https://ift.tt/3ddCXMh
https://ift.tt/2WkO13c

Bagikan Berita Ini