Federal Reserve Bank of Dallas

10/01/2024 | Press release | Archived content

Dallas Fed: Texas service sector strengthens

News Releases

October 01, 2024

DALLAS-Texas service sector activity accelerated in September, according to business executives responding to the Texas Service Sector Outlook Survey.

"Texas service sector activity accelerated in September despite labor market measures suggesting little growth in employment," said Jesus Cañas, Dallas Fed senior business economist. "Wage and selling price pressures held steady, while input price pressures eased. Perceptions of broader business conditions were mixed in September."

Key takeaways from the service sector survey:

  • The revenue index rose to 10.1, the highest level in 13 months.
  • The employment index held fairly steady at 2.0.
  • The selling price index was basically unchanged at 5.4, while the input price index fell five points to 23.3.
  • The wages and benefits index fell two points to 12.3.
  • The general business activity index improved to -2.6, with the negative reading still signaling worsening activity.
  • The company outlook index increased 4 points to 1.2.

Texas retail sales contract again

Key takeaways from the retail survey:

  • The sales index fell three points to -8.9.
  • The employment index fell two points to -7.7.
  • The general business activity index was practically unchanged at -14.9.

Data were collected Sept. 17-25, and 260 Texas service sector business executives responded to the survey.

Texas service sector and manufacturing firms reported that 30 percent of their employees work remotely, on average, including both hybrid and fully remote, according to supplemental questions for this month's survey. That is down slightly from a year ago.

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:
Jon Prior
Federal Reserve Bank of Dallas
Phone: 214-922-6857
Email: [email protected]