Texas services sector activity grew at a slower pace in October, according to a survey released today by the Federal Reserve Bank of Dallas.
The state’s service sector represents almost 70 percent of Texas’ economy and employs nearly 7.6 million workers.
REVENUE: The services revenue index — a key measure of industry conditions — declined from 26.9 in September to 14 in October.
OTHER: Employment was the only major category to see faster growth, rising 0.4 points to 12.3 in October. The indexes for part-time work, hours worked, wages, prices and capital spending all declined, but remained in positive territory. Perceptions of broader economic conditions were less optimistic, with the general business activity index falling 9.5 points in October.
RETAIL: The Texas Retail Outlook Survey showed that retail sales grew much slower. The sales index plunged 18.8 points from 35.5 in September to 16.7 in October.
COMMENTS: A few companies noted a slowing of business, perhaps related to fighting in the Middle East and the spread of the Ebola virus in the United States, starting in Dallas. Some companies also reported that falling oil prices have impacted their business a bit and will watch for signs of softer demand in future.
FUTURE: Indexes of future services and retail activity fell, but remained in solid positive territory.
