The Dallas Fed reported the Texas service sector saw modest growth in April, while labor market indicators showed a rise in employment and stable workweeks, according to the Texas Service Sector Outlook Survey. Business executives reported easing input price and wage pressures, but increased selling price pressures.
Jesus Cañas, Dallas Fed senior business economist, stated, "Perceptions of broader business conditions continued to worsen in April, though pessimism waned slightly."
Key takeaways from the service sector survey include a slight increase in activity growth, as the revenue index rose to 6.9, and a dip in the input prices index from 38.3 to 35.5. The selling prices index climbed five points to 16.1, while the wages and benefits index dropped slightly to 18.4. The company outlook index improved marginally from -11.3 to -9.4, with the outlook uncertainty index falling to 16.1.
In the retail sector, April saw growth in retail sales after stagnation in March. Labor market indicators showed modest employment growth but a continued shortening of workweeks. Retailers' perceptions of broader business conditions worsened, with the general business activity and company outlook indexes remaining deeply negative.
Key takeaways from the retail survey include an increase in the sales index to 3.2, an eight-point rise in the employment index to 1.6, and a flat company outlook index at -16.1. The outlook uncertainty index dropped 14 points to 11.8.
Data for the survey was collected between April 11 and April 19, with responses from 298 Texas service sector business executives, including 60 retailers.
Executives from both manufacturing and service sectors also answered special questions on labor market and credit conditions. The Dallas Fed conducts the survey monthly to assess activity in the state's service sector, which accounts for nearly 70% of the Texas economy and employs around 9.5 million workers.