Dallas Fed Business Activity Slows
2026-09-01 14:42
By
Larissa Caser
1 min. read
The general business activity index for the Dallas Fed’s service sector fell to 4.2 in August 2026 from 6.6 in the prior month.
Despite the modest decline in optimism, the index remained in positive territory, indicating continued improvement in broader business conditions, while uncertainty was broadly unchanged.
The revenues index declined to 6.6 from 9.5, while the company outlook index fell sharply to 3.0 from 10.4.
Input price pressures intensified, with the index rising to 35.6 from 33.5, while selling-price growth eased to 8.9 from 14.2.
Capital spending also weakened to 6.0 from 11.5.
Labor-market conditions softened, with the employment index falling to 0.8 from 2.6, although wages and benefits edged higher.
Looking ahead, firms remained optimistic, with the future general business activity index rising to 18.6 from 16.8.