FX.co ★ Dallas Fed Business Activity Returns to Contraction

The general business activity index published by the Federal Reserve Bank of Dallas declined to -3.2 in February 2026 from 2.7 in January, indicating a modest deterioration in overall business conditions. The revenue index eased to 4.1, giving back some of the strong momentum recorded at the start of the year. Employment levels were little changed, with the corresponding index edging down to 0.4 from 0.9 in January, suggesting broadly stable labor market conditions.

On the pricing side, input costs continued to rise sharply, with the index increasing to 22.4 from 21.1, signaling sustained input cost pressures. In response, firms kept price increases for their own products and services on a similar upward trajectory, as the selling prices index rose to 8.3 from 7.9. Looking ahead, companies remained cautiously optimistic, with the index for future business conditions improving slightly to 15.0 from 14.7.