Dallas Fed Business Activity Returns to Contraction

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The general business activity index published by the Federal Reserve Bank of Dallas fell to -3.2 in February of 2026 from 2.7 in the earlier month, reflecting a slight worsening in broader business conditions. The index measuring revenues ticked down to 4.1, losing traction from the jump seen in the first month of the year. Consistently, employment levels suggested little change (0.4 vs 0.9 in January 2026). On the price front, input costs extended their sharp increases and rose at about the same pace as the previous month (22.4 vs 21.1), driving companies to similarly maintain growth for selling charges (8.3 vs 7.9). Looking ahead, companies continued to improve their outlook on future business conditions (15.0 vs 14.7).

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