Federal Reserve Bank of Dallas

27/08/2024 | Press release | Archived content

Dallas Fed: Modest growth in Texas service sector activity continues

News Releases

August 27, 2024

DALLAS-Texas service sector activity expanded at about the same pace in August as the prior month, with expectations for growth to continue in the next six months, according to business executives responding to the Texas Service Sector Outlook Survey.

"Labor market measures suggested no growth in employment," said Jesus Cañas, Dallas Fed senior business economist. "Selling prices and wage pressures held steady, while input price pressures increased. Finally, perceptions of broader business conditions worsened slightly in August."

Key takeaways from the service sector survey:

  • The revenue index was little changed at 8.7.
  • The employment index held fairly steady at 0.6, with the near-zero reading signaling little change in employment from July.
  • The selling price index was basically unchanged at 4.5 while the input price index rose to 28.4.
  • The wages and benefits index held steady at 14.2.
  • The general business activity index fell to -7.7 while the company outlook index also fell to -3.1.

Pace of Texas Retail Sales Decline Slows

"Retail sales activity declined at a slower pace in August than in the prior month and labor market indicators suggested a contraction in employment," Cañas said.

Key takeaways from the retail survey:

  • The sales index increased to -6.2 from -18.1.
  • The employment index was basically unchanged at -5.9.
  • The general business activity index remained negative but improved to -15.9 from -18.3.

Data were collected Aug. 13-21, and 262 Texas service sector business executives responded to the survey.

About a quarter of Texas businesses reported being impacted by recent storms that hit the state, according to supplemental questions for this month's survey.

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