Federal Reserve Bank of Dallas
10/27/2026 | Press release | Distributed by Public on 10/27/2026 08:36
Texas Service Sector Outlook Survey
October 27, 2026
Special questions: Credit conditions
Texas service sector activity grew in October after stalling the prior month, according to business executives responding to the Texas Service Sector Outlook Survey. The revenue index, a key measure of state service sector conditions, rose five points to 4.4.
Labor market measures suggested continued growth in employment and expansion in workweeks. The employment and part-time employment indexes were little changed, registering 2.8 and 2.6, respectively. The hours worked index edged up to 2.2 from 0.1.
Perceptions of broader business conditions improved in October, with the two key indexes turning positive. The general business activity index rose to 4.0 from -1.8, and the company outlook index rose to 3.0 from -3.2. Meanwhile, the outlook uncertainty index fell five points to 16.3.
Price and wage pressures remained elevated. The input prices index was little changed at 41.7, remaining far above the series average of 28.0. The selling prices index edged up three points to 18.2, also well above its series average of 7.5. The wages and benefits index rose five points to 20.5, its highest reading since January 2023.
Respondents' expectations regarding future business activity improved. The future revenue index rose five points to 43.6, while the future general business activity index advanced to 19.6 from 10.7. Other future service sector activity indexes, such as employment and capital expenditures, remained in solidly positive territory.
Next release: December 1, 2026
Data were collected Oct. 13-21, and 224 of the 342 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 October 27, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 27, 2026 at 14:36 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]