The Federal Reserve Bank of Dallas’ general business activity index for the Texas service sector fell to -1.8 in September 2026 from 4.2 in August, entering negative territory for the first time since May as perceptions of broader business conditions deteriorated. The uncertainty outlook rose to 21.4, well above its series average, while input price pressures reached their highest level since December 2022 and selling price pressures also increased. The revenue index fell eight points to -0.9, indicating little change in service-sector activity from the previous month. Expectations remained positive, with the general business conditions index for companies at 10.7 despite declining from 18.6.