Federal Reserve Bank of Dallas
09/01/2026 | Press release | Distributed by Public on 09/01/2026 08:59
Texas Service Sector Outlook Survey
September 1, 2026
Special questions: Demand and margins
Texas service sector activity expanded in August, according to business executives responding to the Texas Service Sector Outlook Survey. The revenue index, a key measure of state service sector conditions, ticked down three points to 6.6.
Labor market measures suggested no growth in employment, while workweeks increased at a similar pace as in July. The employment index dipped two points to a near zero reading, while the hours worked index was relatively unchanged at 5.7.
Perceptions of broader business conditions continued to improve in August, but optimism waned somewhat. The general business activity index edged down two points but remained in positive territory at 4.2. The company outlook index fell to 3.0 from 10.4. Meanwhile, the outlook uncertainty index was little changed at 12.9.
Input price pressures increased slightly, while selling prices rose at a slower pace than the previous month. The input prices index ticked up two points to 35.6, while the selling prices index fell five points to 8.9. The wages and benefits edged up three points to 18.8, a level that exceeds the series average of 15.4.
Respondents' expectations regarding future business activity reflected continued optimism in August. The future revenue index rose slightly to 35.9 from 32.6, while the future general business activity index ticked up two points to 18.6. Other future service sector activity indexes, such as employment and capital expenditures, remained in solidly positive territory.
Next release: Sept. 29, 2026
Data were collected August 18-26, and 236 of the 340 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.
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