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Dallas Fed: Service Sector Outlook Hits New Low
The Texas service sector saw a dramatic decline in March amid the ongoing coronavirus (COVID-19) pandemic and measures to address the virus’ spread, according to business executives responding to the Dallas Fed’s Texas Service Sector Outlook Survey. The revenue index, a key measure of state service sector conditions, plummeted from 14.0 in February to -67.0 in March, an all-time low reading for the survey.
Labor market indicators reflected a sharp contraction in employment and significantly shortened work weeks. The employment index fell from 6.1 to -23.8, its lowest reading on record.
Perceptions of broader business conditions turned extremely pessimistic in March, while uncertainty surged. The general business activity index fell over 85 points to -78.8, while the company outlook index dropped 80 points to -75.3, setting a new record low for both indexes. The outlook uncertainty index surged to 37.6, its highest reading to date.
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- ◦Economy
