Dallas Fed: Texas service sector activity expands at an accelerated pace

"Texas service sector activity accelerated sharply in May, according to business executives responding to the Texas Service Sector Outlook Survey," the Federal Reserve Bank of Dallas noted in its recently published report. Below are some key takeaways.

The revenue index, a key measure of state service sector conditions, increased from 14.7 in April to 22.8 in May, reaching its highest reading so far this year.

The employment index held mostly steady at 16.6, its highest reading since mid-2014. The hours worked index edged up to a six-year high of 10.4 from 8.0 in April.

The general business activity index advanced four points to 18.5, while the company outlook index rose slightly to 15.4 from 12.7 in April.

The selling prices index fell from 19.2 to 15.4, though it remains above its 2017 average. The wages and benefits index came in at 22.6, similar to April’s reading.