July 2, 2020
Retail sales activity surged in June to its highest reading in two years, according to the Dallas Federal Reserve’s Texas Retail Outlook Survey. Over half of respondents reported increased sales compared with May, while less than one-quarter reported decreases.
That said, while retail labor market indicators improved, they continued to point toward declining employment and shortened workweeks in June.
Also up were retailers’ perceptions of broader business conditions. The general business activity index advanced from -17.9 In May to a six-year high of 29.6, while the company outlook index rose from -12.8 to 16.5. The outlook uncertainty index also declined to -9.6, its first indication of reduced uncertainty since last December.
Retailers’ perceptions of future conditions remained positive in June, although optimism was somewhat dampened compared with May. The future general business activity index and the future company outlook index both declined while remaining in positive territory.
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