Updated
Updated · Fort Worth Inc. · Sep 2
Texas Service Growth Slows in August as Employment Stalls and Input Prices Rise to 35.6
Updated
Updated · Fort Worth Inc. · Sep 2

Texas Service Growth Slows in August as Employment Stalls and Input Prices Rise to 35.6

3 articles · Updated · Fort Worth Inc. · Sep 2

Summary

  • Texas service-sector activity kept expanding in August, but more slowly: the Dallas Fed’s revenue index fell to 6.6 from 9.5, while the employment index slipped to 0.8 from 2.6.
  • Cost pressures remained a key drag on businesses, with the input prices index rising to 35.6 from 33.5 and wages and benefits climbing to 18.8, even as selling-price growth cooled to 8.9.
  • Broader conditions also weakened, with the general business activity index down to 4.2 from 6.6, the company outlook index dropping to 3.0 from 10.4, and capital expenditures slowing to 6.0 from 11.5.
  • Future indicators stayed positive despite the August moderation: the future revenue index rose to 35.9 from 32.6 and future general business activity increased to 18.6 from 16.8.

Insights

Why are Texas businesses remaining so optimistic about the future even as surging hidden inflation threatens to crush their profit margins?
Could alternative inflation metrics reveal a hidden economic squeeze that standard headline numbers are completely missing right now?