FX.co ★ Dallas Fed Business Activity Contracts

The Federal Reserve Bank of Dallas reported that its general business activity index for the service sector fell to -1.8 in September 2026, slipping into negative territory for the first time since May and down from 4.2 in August, as perceptions of overall business conditions worsened. The outlook uncertainty index rose to 21.4, remaining well above its long‑run average, while input cost pressures climbed to their highest level since December 2022. Selling price pressures also increased.

The revenue index—a key gauge of conditions in the state’s service sector—declined eight points to -0.9. This near-zero reading signals that overall activity changed little from the previous month. Despite the softer current conditions, firms stayed optimistic about the outlook: the company‑level general business conditions index remained in positive territory, though it eased to 10.7 from 18.6.