Texas retail sales rebound in November

TEXAS – Retail sales activity in Texas increased in November after a sharp decline in October, according to the Retail Trade Outlook Survey.

According to reports from the Federal Reserve Bank of Dallas (Dallas Fed), the Texas retail sales index, jumped from -9.7 in October to 23.0 in November, its best reading since June 2020.

According to the report, businesses experienced a net increase in inventories, as the index rose nearly 20 points to stand at 10.6.

Retail labor market indicators also improved in November. Statistics presented by the Dallas Fed revealed that the employment index increased from 0 to 5.9, while the index for part-time jobs rose to a three-year high of 9.6.

On the other hand, the hours worked index remained positive, however, it fell more than five points to 4.3.

After a pessimistic October, retailers’ perceptions of overall business conditions improved in November, as the overall business activity index rose from 1.6 to 14.9, while the business outlook index rebounded to 12.5, its best reading since the spring of this year.

However, the outlook uncertainty index rose from 8.5 to 16.0, with 21% of respondents noting an increase in uncertainty this month.

Also, wage and retail price pressures reached record highs during the eleventh month of the year. The selling price index added 14 points to 59.5, while the input cost index rose from 56.3 to 65.9, both survey highs since 2007.

Dallas Fed noted that the wages and benefits index rose six points to 44.5, also a new high.

Expectations for future retail activity remain solid. The index of future general business activity rose to 18.3, while the index of future sales fell, but remained in positive territory at 36.7. The Dallas Fed forecast that employment, capital spending, and other measures of activity will improve during the first half of next year.

Source: MEXICO-NOW Staff