"Our Business Has Died": Texas Services Sector Sentiment Slumps Further In October

Texas service sector activity contracted further in October, according to business executives responding to The Dallas Fed's survey...

Source: Bloomberg

The revenue index, a key measure of state service sector conditions, fell four points to -6.4, its lowest reading since July 2020...

Labor market measures suggested further declines in employment,though hours worked were largely unchanged this month. The employment index fell slightly to -5.8 from -3.6 in September...

Source: Bloomberg

Perceptions of broader business conditions worsenedin October, but respondents expectations regarding future service sector activity remained positive, though October readings were below average.

However, it's the responses that give us a glimpse into the harsh reality on the ground as the locals are hardly delighted with either tariffs, high interest rates, falling demand or general economic malaise, which is to be expected from a regional Fed that is largely dependent on the US energy industry (read Texas shale) which in turn has been crippled by Trump's demands to keep oil prices as low as possible if not lower, and has hammered the US oil E&P industry.

Selected comments below (read the full set here)

Accommodation

Administrative and support services

Ambulatory health care services

Credit intermediation and related activities

Educational services

Pipeline transportation

Professional, scientific and technical services

Publishing industries (except internet)

Real estate

Repair and maintenance

Specialty trade contractors

Truck transportation

And finally, one respondent waxed poetic:

So, with President Trump doing everything in his powers to bring down the price of oil (and therefore gas), it appears the locals can't take it anymore.