Federal Reserve Bank of Dallas
02/24/2026 | Press release | Distributed by Public on 02/24/2026 09:49
Texas Service Sector Outlook Survey
February 24, 2026
Special questions: Demand, regulation and hiring
Texas service sector activity grew slightly in February, 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 four points but remained in positive territory at 4.1.
Labor market measures suggested little change in employment, though hours worked contracted slightly. Both the employment and part-time employment indexes registered near-zero readings, suggesting little change in February. The hours worked index declined four points to -2.7.
Perceptions of broader business conditions worsened slightly. The general business activity index fell to -3.2 from 2.7 in January. The company outlook index also declined, falling eight points to -2.4. Meanwhile, the outlook uncertainty index fell seven points to 9.3, its lowest reading since January 2025.
Input and selling prices rose at about the same pace as in January. The input and selling prices indexes were little changed, registering 22.4 and 8.3, respectively. The wages and benefits index fell four points to 9.2.
Respondents' expectations regarding future service sector activity continued to improve. The future revenue index ticked down three points to 38.3, though it still remained in-line with the series average of 37.2. The future general business activity index was little changed at 15.0. Other future service sector activity indexes, such as employment and capital expenditures, remained in solidly positive territory.
Next release: March 31, 2026
Data were collected Feb. 10-18, and 240 of the 347 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 February 24, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on February 24, 2026 at 15:49 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]