Federal Reserve Bank of Dallas Texas Service Sector Outlook Survey Revenue Index
The Dallas Fed Services Revenues Index measures whether Texas service-sector firms report higher or lower revenue than in the previous month. It is a monthly regional survey of service businesses.
Overview
The index is part of the Dallas Fed's Texas Service Sector Outlook Survey. Firms report whether revenue, employment, prices and other indicators increased, decreased or were unchanged; the revenue index subtracts the share reporting decreases from the share reporting increases. Positive values generally indicate revenue growth across the surveyed firms, while negative values indicate contraction.
Why traders watch it
Texas is a large state economy, and its service-sector survey gives an early read on regional demand, hiring and price pressures. Traders may use it as supporting evidence for U.S. growth and inflation expectations.
How to interpret the result
A stronger-than-expected revenue index may point to firmer service-sector demand in Texas. A weaker-than-expected reading may suggest slower activity, especially if broader business activity and employment indicators also soften.