Federal Reserve Bank of Dallas
06/30/2026 | Press release | Distributed by Public on 06/30/2026 09:02
Texas Service Sector Outlook Survey
June 30, 2026
Special questions: Wages, prices and outlook concerns
Texas service sector activity expanded at a faster pace in June than the prior month, according to business executives responding to the Texas Service Sector Outlook Survey. The revenue index, a key measure of state service sector conditions, increased five points to 9.8.
Labor market measures suggested a resumption of employment growth and an increase in workweeks in June. The employment index jumped to 8.1 from -3.2 in May. The part-time employment index was little changed at 2.4. Meanwhile, the hours worked index rose four points to 3.6.
Perceptions of broader business conditions rebounded in June. The general business activity index moved up to 2.9 from -7.7. The company outlook index also bounced back into positive territory, surging 12 points to 6.1. Meanwhile, the outlook uncertainty index was little changed at 12.6.
Selling price pressures increased slightly, while input price and wage pressures grew at a faster pace. The selling prices index edged up to 7.7 from 5.0. The input prices index moved up seven points to 36.5, registering well above the series average of 27.8. The wages and benefits index rose nine points to 15.3.
Respondents' expectations regarding future service sector activity improved markedly. The future revenue index rose four points to 33.3, while the future general business activity index jumped up 18 points to 17.2. Other future service sector activity indexes, such as employment and capital expenditures, remained in solidly positive territory.
Next release: July 28, 2026
Data were collected June 16-24, and 214 of the 349 Texas service sector business executives surveyed submitted responses. The Dallas Fed conducts the Texas Service Sector Outlook Survey monthly to obtain a timely assessment of the state's service sector activity. Firms are asked whether revenue, employment, prices, general business activity and other indicators increased, decreased or remained unchanged over the previous month.
Survey responses are used to calculate an index for each indicator. Each index is calculated by subtracting the percentage of respondents reporting a decrease from the percentage reporting an increase. When the share of firms reporting an increase exceeds the share reporting a decrease, the index will be greater than zero, suggesting the indicator has increased over the prior month. If the share of firms reporting a decrease exceeds the share reporting an increase, the index will be below zero, suggesting the indicator has decreased over the prior month. An index will be zero when the number of firms reporting an increase is equal to the number of firms reporting a decrease.
Data have been seasonally adjusted as necessary.
Federal Reserve Bank of Dallas published this content on June 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 30, 2026 at 15:02 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]