The Federal Reserve Bank of Dallas informed on Wednesday its general
business activity index for the service sector in Texas decreased to -12.1 in May
from an unrevised -10.6 in the previous month. This was the 24th consecutive
negative reading and the worst since October 2023 (-18.6).
According to the survey’s details, the revenue
index, a key measure of service sector conditions, climbed by 6.4 points to +6.7,
suggesting an expansion in activity. The employment indicator jumped by 6.5
points to +3.9, pointing to a resumed growth in employment after two months of
decline. The hours worked measure increased by 1.7 points to -0.4, pointing to flat
growth in hours worked in May. Meanwhile, the company outlook index fell by 3.9
points to -5.7, indicating a slight worsening in perceptions of broader business
conditions in May. On the price front, the input prices index plunged by 8.1
points to +20.7, its lowest level since October 2020 (18.2), while the selling
prices index remained unchanged at +3.9.