The general business activity index for the service sector published by the Federal Reserve Bank of Dallas fell to -1.8 in September 2026, entering negative territory for the first time since May, down from 4.2 in the previous month as perceptions of broader business conditions deteriorated. The uncertainty outlook increased to 21.4, well above its series average, while input price pressures rose to their highest level since December 2022. Selling price pressures also increased. The revenue index, a key measure of conditions in the state’s service sector, fell eight points to -0.9, with the near-zero reading indicating little change in activity from the previous month. Looking ahead, firms remained optimistic about business activity, as the general business conditions index for companies remained positive, although declining to 10.7 from 18.6.