Dallas Fed Business Activity Contracts Most in 11 Months

The general business activity index published by the Federal Reserve Bank of Dallas plummeted by 10.1 points from the previous month to -13.3 in March of 2026, reflecting the largest magnitude of pessimism since April of the previous year. Revenues grew at a softer pace (1.3 vs 4.1 in February). The drop in the index coincided with a sharp increase in input prices (24.4 vs 22.4) due to the surge in global energy prices after the outbreak of war in the Middle East, while the drop in client's acquisition power pressured selling price growth (4.9 vs 8.3). Looking ahead, the company outlook index dropped by 7.5 points to -9.9.

The general business activity index published by the Federal Reserve Bank of Dallas fell to -3.2 in February of 2026 from 2.7 in the earlier month, reflecting a slight worsening in broader business conditions. The index measuring revenues ticked down to 4.1, losing traction from the jump seen in the first month of the year. Consistently, employment levels suggested little change (0.4 vs 0.9 in January 2026). On the price front, input costs extended their sharp increases and rose at about the same pace as the previous month (22.4 vs 21.1), driving companies to similarly maintain growth for selling charges (8.3 vs 7.9). Looking ahead, companies continued to improve their outlook on future business conditions (15.0 vs 14.7).

The general business activity index published by the Federal Reserve Bank of Dallas rose to 2.7 in January of 2026 from the downwardly revised -5 in the earlier month, reflecting the first improvement in business activity since August. The index measuring revenues jumped to 7.8, gaining traction from the stall in the final month of last year. Consistently, employment levels rebounded (0.9 vs -1.1 in December 2025). On the price front, input costs extended their sharp increases but slowed from the previous month (21.1 vs 27.1), driving companies to ease the growth for selling charges (7.9 vs 8.2).Looking ahead, companies improved their outlook on future business conditions (5.6 vs -2.7).