The pace of revenue growth in the U.S. services sector slowed notably in March, according to the latest data from the Federal Reserve Bank of Dallas. The Dallas Fed Services Revenues index eased to 1.3 in March 2026, down from 4.1 in February 2026, signaling a moderation in expansion across service industries in the region.
While the index remained in positive territory—indicating that revenues were still growing—the weaker reading points to softer demand dynamics compared with earlier in the year. The decline suggests that service providers are experiencing a more restrained increase in business activity as the first quarter draws to a close.
The updated figures, released on 31 March 2026, will be closely watched by analysts and investors for signs of whether this deceleration is temporary or the beginning of a broader cooling in the U.S. services economy, a key driver of overall growth.
