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]