The Texas Service Sector Revenue Index fell -8.5 pts to -4.7 in May, indicating a modest contraction in activity, while General Business Activity improved but remained negative at -10.1 (from -19.4).

• Employment rose to -0.2 (from -5.1), and Part-Time Employment increased to -0.7 (from -3.4), suggesting stabilization in labor markets.
• Input Prices dropped -12 pts to 20.5, and Selling Prices eased -3.2 pts to 5.2; Wages held steady at 9.7.
• Outlook Uncertainty declined sharply to 18.7 (from 40.5).
• Company Outlook improved to -8.3 (from -15.5), and Future Revenue and Business Activity indexes turned neutral to slightly positive.

The Texas Retail Sales Index plunged -32.8 pts to -30.5 in May, the weakest since April 2020, as retail conditions deteriorated sharply.

• Retail Employment remained weak at -8.1, while Hours Worked held at -3.8; Wages dropped to -1.1, the lowest since July 2020.
• Input Prices fell -13.6 pts to 21.3 and Selling Prices fell -16.1 pts to 5.2.
• Inventories dropped further to -10.7 (from -2.4), and Companywide Sales collapsed to -35.8.
• General Business Activity declined to -23.7 (from -14.8); Future outlook improved slightly but remains weak (e.g., Future Activity at -1.3, Company Outlook at -3.3).