The Texas services sector showed signs of weakening in September 2026, as the Texas Services Sector Outlook index fell into negative territory. The indicator declined to -1.8 in September from 4.2 in August 2026, signaling a shift from modest expansion to slight contraction in service activity across the state.
The move below zero suggests that, on balance, more service firms reported worsening conditions than improving ones over the month. This downturn follows August’s positive reading, when the sector was still indicating growth, albeit at a moderate pace.
The latest data, updated on 29 September 2026, highlight a cooling in momentum for Texas’s service industries, which span areas such as retail, hospitality, professional services, and logistics. Market participants and policymakers may watch upcoming months closely to see whether September’s negative reading marks the start of a broader slowdown or a temporary soft patch in the state’s service-driven economy.