Texas Service Sector Posts Steady Acceleration in March

Texas service sector output expanded at a steady pace in March as wages and prices continue rising.

• The revenue index, a key measure of state service sector conditions, rose from 21.9 in February to 23.4 in March, its highest level in four months.
• Labor market measures revealed a steady growth in hiring and hours worked compared to February. The employment index was the same at 14.4, and the part-time employment index remained stable at 7.0%.
• In March, the service sector posted an increase in wages and prices as the wages and benefits index jumped from 34.7 to 36.5.
• Perceptions of wider business conditions remained positive, even though it was lower compared with February.
• The index for general business activity dropped six points to 10.6 as the company outlook index fell from 14.2 to 2.7.

Outlook for future retail activity eased in March. The future general business activity index dropped from 10.1 to 3.0%, as the future sales index fell slightly from 39.1 to 37.9.

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Source: Federal Reserve Bank of Dallas