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The general business activity index for the service sector, published by the Federal Reserve Bank of Dallas, rose to 6.6 in July 2026 from 2.9 in June, marking the fastest pace of growth in 11 months. The reading was broadly consistent with other surveys for the period, as a temporary restoration of energy exports from the Middle East helped push down energy prices and operating costs, improving margin prospects across the sector.
Revenue growth eased only slightly (9.8 vs. 9.5 in June), while hours worked accelerated (4.9 vs. 3.6). At the same time, input price pressures moderated (33.5 vs. 36.5), even as selling prices rose sharply (14.2 vs. 7.7). Looking ahead, the index of general business conditions for companies strengthened to 21 from 17.1, indicating firmer optimism about future activity.
