FX.co ★ Dallas Fed Services Index Improves

In May 2025, the Dallas Fed's general business activity index experienced an increase of 9.3 points from the previous month, registering at -10.1. This shift indicates a reduced rate of decline in business activity. This outcome aligns with other leading indicators for the U.S., which showed improvement in May following the White House's decision to reverse aggressive tariffs on major trading partners, although uncertainty persisted. The enhancement is largely attributed to better employment figures (-0.2 compared to April's -5.1) and increased capital expenditures (4.4 from 0.6), suggesting that firms are expanding capacity in anticipation of better business conditions. Similarly, the outlook for revenues saw a significant rise (from 16.8 to 27.2), while the measure of uncertainty dramatically decreased (from 40.5 to 18.7). Despite these positive projections, current revenue figures fell (-4.7 from 3.8).