Dallas Fed service sector survey -9.3 vs -15.0 prior

• 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 The Fed "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of Read this Term’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]