Texas service sector activity picked up pace in September, according to business executives responding to the Texas Service Sector Outlook Survey. The revenue index, a key measure of state service sector conditions, rose from 10 to 15, its highest reading since March, with 33 percent of respondents noting revenues increased from August.
Labor market indicators reflected stronger labor demand growth and slightly longer workweeks. Employment grew at a faster pace in September, with the index increasing from 6.3 to 9.8. The hours worked index edged up from 0.8 to 2.6.
Perceptions of general business conditions improved in September. The general business activity index rose from 8.4 to 10.1. The company outlook index moved up from 4.7 to 9.1, with 20 percent of respondents reporting their outlooks improved from last month and 11 percent noting they worsened.
Selling prices and wages rose slightly faster in September. The selling prices index edged up from 6 to 8.3, its highest reading in five months. The wages and benefits index moved up from 9.4 to 13.6.
Indexes of future service sector activity rose in September. The future revenue index increased 3 points to 36.4. Expectations regarding future business conditions were more optimistic. The index of future general business activity advanced to a reading of 14.3, and the index of future company outlook moved up from 12 to 17.7.