Texas service sector activity expanded in January after stalling at the end of last year, according to the latest Texas Service Sector Outlook Survey from the Federal Reserve Bank of Dallas.
The survey’s revenue index rose to 7.8 in January from 0.0 in December, indicating renewed growth. Employment and hours worked were essentially flat, with both indexes near zero, while the part-time employment index increased to 5.5.
Measures of broader business conditions improved. The general business activity index moved into positive territory at 2.7 after four consecutive negative readings, and the company outlook index increased to 5.6. Outlook uncertainty was little changed, registering 16.5.
Price pressures eased during the month. The input prices index declined to 21.1, while the selling prices index was largely unchanged at 7.9. The wages and benefits index edged up to 13.5.
Expectations for future activity strengthened. The future revenue index rose to 41.0, above its long-run average, while the future general business activity index increased to 14.7. Other forward-looking indicators, including employment and capital spending, remained positive.
The survey was conducted Jan. 13–21 and included responses from 244 of 347 Texas service-sector executives. The Dallas Fed uses the monthly survey to track revenue, employment, prices and broader business conditions across the state’s service industries.
Beginning with this release, results from the Texas Retail Outlook Survey are being incorporated into the service sector survey and will no longer be reported separately.