Service Sector in Texas Continues Expansion

by CoyDavidson on February 28, 2012

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.

Texas Service Sector Outlook Survey February 2012

Previous post:

Next post:

Disclaimer: All blog entries on this site are the opinion of the author and not those of either Colliers International - Houston or Colliers International (collectively, "Colliers"). Colliers neither endorses, sponsors nor necessary shares the opinions of the author, regardless of whether any blog is posted by any employee, officer, agent, or representative of Colliers. Colliers has not authorized or verified any statement of fact made in a blog, and any such statement does not constitute a statement of fact by Colliers. Colliers is not responsible for the monitoring or filtering of any blog, nor does Colliers claim ownership or control over any blog content.