Federal Reserve Bank of Dallas

29/10/2024 | Press release | Distributed by Public on 29/10/2024 19:23

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

News Releases

October 29, 2024

DALLAS-Texas service sector activity expanded at about the same pace in October as the prior month, according to business executives responding to the Texas Service Sector Outlook Survey.

"Service sector labor market measures suggested no growth in employment and just a slight improvement in hours worked," said Jesus Cañas, Dallas Fed senior business economist. "Wage and input price pressures increased, while selling price growth held steady. Perceptions of broader business conditions improved in October."

Key takeaways from the service sector survey:

  • The revenue index was little changed at 9.2.
  • The employment index came in at -0.2, with the near-zero reading signaling flat employment.
  • The input price index increased three points to 26.1 and the selling price index was little changed at 4.0.
  • The wages and benefits index increased four points to 16.3.
  • The general business activity index increased five points to 2.0, its first positive reading in more than two years.
  • The company outlook index increased three points to 3.8.

Texas retail sales decline

"Retail sales and retail employment fell again in October," Cañas said.

Key takeaways from the retail survey:

  • The sales index fell three points to -11.4.
  • The employment index remained in negative territory but increased four points to -3.8.
  • The general business activity index fell five points to -19.8.

From Oct. 15-23, the Dallas Fed asked a series of special questions on credit conditions in the Texas Business Outlook Surveys and heard back from 338 business executives.

The share of Texas businesses reporting difficulty accessing credit has fallen from one year ago, according to the survey results.

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]