Texas service sector activity continued to expand in September, although at a slower pace than in the previous month, according the Federal Reserve Bank of Dallas' Texas Service Sector Outlook Survey.
The revenue index, a key measure of state service sector conditions, decreased to 19.4 this month from 26.9 in September.
Labor market indicators continued to reflect employment growth and longer workweeks. The employment index was nearly unchanged at 13.1, while the hours worked index also held steady at 6.2.
“Perceptions of broader economic conditions reflected less optimism in October.” The Dallas fed said. “The general business activity index plunged from 25.6 to 14.1, while the company outlook index declined 10 points to 11.2. Nevertheless, the outlook uncertainty index dipped slightly from 9.0 in September to 8.0 in October.”
Price and wage pressures remained elevated in October. The wages and benefits index declined to 20.2 from 21.6 while the selling price index was almost unchanged at 16.1.
“Respondents’ expectations regarding future business conditions were positive but somewhat diminished compared with September,” The Dallas Fed said.
The future general business activity index fell seven points to 20.9, its lowest level in more than a year, while the future company outlook index fell over five points to 22.8.
The Dallas Fed serves the Eleventh Federal Reserve District, which consists of Texas, northern Louisiana and southern New Mexico.
