Texas Service Sector Growth Slows Amid Cost Pressures

Texas service sector growth slowed down in August, according to the latest Texas Service Sector Outlook Survey by the Federal Reserve Bank of Dallas. The revenue index declined to 6.6 from 9.5 in July, indicating a decrease in business revenue compared to last month. The employment index also fell to 0.8 from 2.6, showing little growth in labor market measures.

The broader business conditions remained positive but weakened from July. The general business activity index declined to 4.2 from 6.6, and the company outlook index dropped to 3.0 from 10.4. However, despite the moderation in current activity, respondents remained optimistic about the next six months.