Texas Service Sector Continues Expansion Amid Mixed Price Pressures

The Texas service sector continued to expand in July, according to the latest survey by the Federal Reserve Bank of Dallas. The revenue index remained steady at 9.5, indicating ongoing growth across the state's service economy. Employment also expanded, albeit at a slower pace than in June, with an employment index of 2.6 and hours worked index holding steady at 4.9.

Business leaders expressed greater confidence in broader economic conditions, with the general business activity index climbing four points to 6.6 and the company outlook index increasing from 6.1 to 10.4. However, price pressures remained mixed, with selling prices accelerating but input prices easing slightly.

The survey collected responses from 241 of 341 Texas service sector executives between July 14 and July 22. The respondents remained optimistic about future conditions, with the future revenue index holding steady at 32.6 and the future general business activity index registering 16.8.