Dallas Fed: Growth in Texas service activity moderates

News Releases

June 25, 2024

DALLAS-Texas service sector activity expanded at a slower pace in June than the prior month, according to business executives responding to the Texas Service Sector Outlook Survey.

"Labor market measures also suggested slower employment growth," said Jesus Cañas, Dallas Fed senior business economist. "Input price pressures increased, while selling price and wage pressures remained the same. Respondents continued to perceive worsening broader business conditions, though pessimism waned slightly."

Key takeaways from the service sector survey:

• The revenue index fell to 1.9 in June from 6.7 in May.
• The employment index fell from 3.9 to 1.8.
• The input price index moved up from 20.7 to 24.7.
• The selling price index was unchanged at 3.8, and the wages and benefits index was unchanged at 16.4.
• The general business activity index remained negative but increased from -12.1 to -4.1. The company outlook index also improved from -5.7 to -1.3.

Texas retail sales decline again
   
"Retail sales declined further in June and labor market indicators suggested a contraction in employment," Cañas said.

Key takeaways from the retail survey:

• The sales index fell to -18.8 in June from -16.4 in May.
• The employment index remained in negative territory but improved from -5.2 to -4.0.
• The general business activity index remained in negative territory but improved from -28.8 to -22.7.

Data were collected June 10-18, and 279 Texas service sector business executives responded to the survey.

For this month's survey, Texas business executives were asked supplemental questions on wages, prices, capital expenditures, outlook concerns and supply-chain disruptions.

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.        

For more information, visit DallasFed.org. 

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

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