The Texas services sector weakened sharply in March 2026, with the Texas Services Sector Outlook index dropping to -13.3, compared with -3.2 in February 2026. The latest data, updated on 31 March 2026, signal a deeper contraction in service activity across the state.
The move further into negative territory suggests that more firms are reporting worsening conditions than improving ones, underscoring rising pressure on a key engine of the Texas economy. The deterioration from February to March points to a loss of momentum in services such as retail, hospitality, professional services and other non-manufacturing businesses, and may weigh on the broader U.S. regional economic picture in the months ahead.
