Texas Service Sector Revenue Holds Steady, Employment Growth Slows

Texas service sector activity barely budged in July, with the Dallas Fed's revenue index holding at 9.5 – nearly unchanged from the prior month. The reading, based on a survey of 241 executives across the state, suggests the sector is treading water after a modest expansion earlier in the year.

Employment growth lost some steam. The employment index dropped to 2.6 from 8.1 in June, though hours worked held steady at 4.9. That points to firms maintaining existing staffing levels rather than adding new hires, a pattern the Dallas Fed has tracked through the summer.

Broader business sentiment improved. The general business activity index rose four points to 6.6, and the company outlook index climbed to 10.4 from 6.1. The outlook uncertainty index barely budged at 12.7, indicating that while firms are more positive, they are not betting the house on a boom.