Heatwave negatively affected a quarter of Texas businesses
This summer's heatwave negatively affected revenue and production at about a quarter of Texas businesses surveyed by the Dallas Fed.
Driving the news: For the first time in its monthly manufacturing and service sector surveys, the bank asked hundreds of Texas business executives about the impact of record-breaking heat.
- Retailers and manufacturers that reported a decrease in revenue or production said lower customer demand and lower labor productivity led to the declines.
Why it matters: The survey quantifies what many of us are hearing anecdotally — people are less likely to go out, and workers are struggling in the heat.
Details: Lower customer demand was the primary driver of decreases in revenue for retail businesses.
- Manufacturers reported that decreased revenue and production were driven by lower labor productivity and workers struggling to work in extreme temperatures.
Of note: Most of the businesses that reported a decrease in production and revenue to the Dallas Fed said the drop was slight. Just about 5% reported a significant decline.
The bottom line: The summer heatwave is predicted to cost the Texas economy nearly $10 billion, per an analysis by The Perryman Group, an economic consulting firm.
- The projected losses are due in part to declining productivity as workers struggle in extreme temperatures, per the Houston Chronicle.
More Dallas stories
No stories could be found
Get a free daily digest of the most important news in your backyard with Axios Dallas.