The general business activity index published by the Federal Reserve Bank of Dallas fell sharply by 10.1 points in March 2026 to -13.3, marking the deepest level of pessimism since April of the previous year. Revenue growth slowed notably (1.3 versus 4.1 in February). The decline in the index coincided with a pronounced rise in input costs (24.4 versus 22.4), driven by surging global energy prices following the outbreak of war in the Middle East. At the same time, weaker client purchasing power weighed on selling price growth (4.9 versus 8.3). Looking ahead, the company outlook index dropped by 7.5 points to -9.9, signaling increased concern about future business conditions.