Texas service sector activity increased in February, according to business executives responding to the Texas Service Sector Outlook Survey by the Federal Reserve Bank of Dallas. The revenue index, a key measure of state service sector conditions, rose sharply from 13.7 to 22.8, with 38 percent of respondents noting revenue increased from January.
Labor market indicators reflect stronger hiring and longer workweeks. The employment index rose to 15.5, its best reading since September 2007. The hours worked index jumped up from 1.6 in January to 12.4 in February.
Perceptions of general business conditions continued to improve. The general business activity index moved up to 24.6, its best reading in the history of the survey. The company outlook index rose to 22.5, also its best reading to date, with 31 percent of respondents reporting their outlooks improved from last month.
Selling prices and wages rose again in February. The selling prices index moved up 4 points to 12.7, and the wages and benefits index rose to 17.4. Both indexes posted their highest readings since July 2008.
Indexes of future service sector activity remained in solid positive territory. Expectations regarding future business conditions were slightly more optimistic. The index of future general business activity advanced from 22.8 to 27.1 in February, and the index of future company outlook also moved further into positive territory.