Texas service sector activity remained slightly positive in February, with the revenue index at 4.1, indicating modest expansion despite softer sentiment.

• The revenue index slipped to 4.1 (Jan: 7.8), showing continued growth but at a slower pace month to month.

• Employment indicators were near zero, with employment at 0.4 (Jan: 0.9) and part time employment at -0.2 (Jan: 5.5), pointing to little change in hiring conditions.

• Hours worked fell to -2.7 (Jan: 1.1), indicating a small contraction in labor utilization even as headcounts held steady.

• General business activity dropped to -3.2 (Jan: 2.7) and company outlook fell to -2.4 (Jan: 5.6), suggesting worsening perceptions of current conditions.

• Outlook uncertainty declined to 9.3 (Jan: 16.5), its lowest since January 2025, showing reduced uncertainty despite weaker sentiment.

• Input prices were 22.4 (Jan: 21.1) and selling prices 8.3 (Jan: 7.9), indicating price pressures continued at roughly the same pace as January.

• The wages and benefits index decreased to 9.2 (Jan: 13.5), pointing to slower labor cost growth.

• Future activity remained positive, with the future revenue index at 38.3 and future general business activity at 15.0, indicating continued expectations for expansion.