Texas Service Sector Rebounds in October After a Stalled September
Revenue and business activity turned positive again, and wage pressure hit its highest level since early 2023, the Dallas Fed reported.
Texas service-sector firms reported renewed growth in October after a flat September, the Dallas Fed said Oct. 27.
The Texas Service Sector Outlook Survey's general business activity index climbed to 4.0 from -1.8, and the revenue index rose to 4.4 from -0.9. The company outlook index improved to 3.0 from -3.2, while outlook uncertainty eased to 16.3 from 21.4. Employment growth stayed positive but cooled, with that index at 2.8 versus 4.1 a month earlier.
Prices and wages stay elevated
Input prices (41.7) and selling prices (18.2) remained well above their long-run averages. The wages and benefits index rose to 20.5, its highest reading since January 2023.
What executives are watching
Respondents cited higher interest rates, which they said slowed real estate, lending and home purchases. Midterm elections, geopolitical conflicts and energy and diesel prices also came up, and some firms said data centers were bidding up wages. Others, particularly in real estate and staffing, reported improvement.
Looking six months out, the future revenue index rose to 43.6 and the future general business activity index to 19.6. The survey drew 224 of 342 executives between Oct. 13 and 21; the next release is Dec. 1.
Sources: Dallas Fed — Texas Service Sector Outlook Survey, October 2026.
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