Dallas Fed service sector survey -9.3 vs -15.0 prior | Forexlive
- Service sector data from the Dallas Fed
- Prior was -15.0
- Services revenue index +6.6 vs +4.9 prior
- Employment +8.8 vs +10.5 prior
- Input prices 38.8 vs 40.6 prior
- Retail outlook survey -19.9 vs -16.9 prior
Comments in the report:
- We are very optimistic regarding growth. Clients continue to push
project-based decisions, so we are carrying costs with the hopes of
projects converting. - The level of development has dropped the most we have seen since the
Great Recession. Our number of opportunities is down 75 percent from
this time last year. There is real cause for concern that everything is
going to just stop. Several national multifamily companies have
stopped projects, and few are in the making. Employers need employees
because we are getting a lot of calls. However, employers seem slow to
commit to the hiring process. I think small businesses are nervous
because of what they read, but they still need people. - The commercial real estate market has taken a pause due to the
uncertainty of how long the interest rate increases will continue. - We see a slight slowing of the construction industry. At this point, it is a welcome break compared to the last five years.
- January sales met our expectation, but costs were higher. We see
February much the same way in terms of revenues. We are working hard to
bring costs down. I anticipate this being the case for most of the
first half of 2023. - Many apartment owners in our area are starting to feel the pain of
increased interest rates, higher property taxes and massive insurance
hikes. Rent increases are currently off the table and occupancy has
stagnated, so owners, investors and lenders are jockeying to see how
the pain pie is going to be divided and who is going to put up the cash
to carry on. - It is extremely hard to make any good predictions about the near future,
much less for the medium or long term. Therefore, currently, we are
just rolling with the punches. - The Fed ’s [Federal Reserve] continued increasing interest rates have significantly slowed loan demand across all sectors.
- As a financial services company, we are impacted by economic and
investment market conditions. Forward looking, I anticipate revenues
declining later this year due to market conditions - [We are] still facing supply-chain headwinds with semiconductors and
long lead times due to record demand for electrical infrastructure
equipment. - Customer traffic has decreased noticeably from the prior month. [motor vehicle sales]
- We are seeing a softening in trucking prices. This lags ocean-container pricing, which started softening in November
- A shortage of employees and difficulty retaining employees remain
significant struggles and are constraining our gross sales. Reduced
business travel remains about the same as it has been as well as back
to office/office occupancy. The stats I see published on the return to
office seem mythical. [Food services and drinking places]