The Federal Reserve Bank of Dallas reported in its Texas Service Sector Outlook Survey that the General Business Activity Index rose to 3.2 during June from -0.3 in May. It remained below the 25.7 peak in September of last year.

The revenue index recovered its May decline while the employment measure held steady. An improved 17% of firms planned to increase employment versus 15% in May. The part-time employment reading increased to the highest level since November. The wages & benefits measure weakened to its lowest point since September 2017.

The selling prices index improved slightly m/m but remained down sharply y/y. The 14% of firms which were raising prices remained down from 21% twelve months earlier. Input prices also improved m/m but were down sharply y/y.

The index of expected business conditions in six months also increased m/m but was significantly below the December 2016 peak. Expected revenue improved m/m but was below the late-2016 high. Expected employment also increased along with expected wages.

The index of expected selling prices was little changed m/m and remained depressed versus the late 2017 high. Thirty-one percent of firms were planning to raise prices versus 44% late in 2017. An increased seven percent were lowering prices. The future wages & benefits reading rose slightly but was well below the late-2017 peak.

Each index is calculated by subtracting the percentage reporting a decrease from the percentage reporting an increase. When all firms report rising activity, an index will register 100. An index will register -100 when all firms report a decrease. An index will be zero when the number of firms reporting an increase or decrease is equal. Items may not add up to 100% because of rounding. Data for the Texas Service Sector Outlook can be found in Haver's SURVEYS database.