Federal Reserve Bank of Dallas

07/30/2024 | Press release | Distributed by Public on 07/30/2024 10:07

Dallas Fed: Texas service sector activity improves, moderate growth continues

News Releases

July 30, 2024

DALLAS-Service sector revenue expanded at a faster pace in July than the month before, according to business executives responding to the Federal Reserve Bank of Dallas' Texas Service Sector Outlook Survey.

"Despite a pickup in revenue, labor market measures suggested no growth in employment," said Jesus Cañas, Dallas Fed senior business economist. "Input price and wage pressures eased, while selling price pressures remained the same. Perceptions of broader business conditions were basically unchanged in July compared to last month when pessimism waned slightly."

Key takeaways from the service sector survey:

  • Revenue index increased to 7.7 from 1.9.
  • Employment index fell from 1.8 to -0.2.
  • Input price index fell to 21.8.
  • Selling price index was basically unchanged at 4.9.
  • Wages and benefits index moved down from 16.4 to 13.4.
  • General business activity index increased from -4.1 to -0.1. The company outlook index also improved from -1.3 to 1.0.

Texas retail sales decline again

"Retail sales activity declined and labor market indicators suggested a contraction in employment," Cañas said.

Key takeaways from the retail survey:

  • Sales index remained the same at -18.1, indicating retail sales fell at about the same pace as the previous month.
  • Employment index fell further to -6.5 from -4.0.
  • General business activity index remained in negative territory but improved from -22.7 to -18.3.

Data were collected June 16-24, and 259 Texas service sector business executives responded to the survey.

For this month's survey, Texas business executives were asked supplemental questions on labor market and financial conditions.

The Dallas Fed conducts the survey monthly to obtain a timely assessment of activity in the state's service sector, which represents almost 70 percent of the state's economy and employs about 9.5 million workers.

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Media contact:
James Hoard
Federal Reserve Bank of Dallas
Phone: 214-922-5307
Email: [email protected]