FX.co ★ Dallas Fed Services Index Hits 7-Month High

The Dallas Fed's general business activity index saw a rise of 4.8 points from the prior month, reaching 6.8 in August 2025, marking the highest level since January. The revenue index, which serves as a significant indicator of the health of the state service sector, climbed to 8.6 in August from 6.3 in the previous month. Concurrently, the employment index dipped slightly to 1.2 from July's 2.8, yet it still indicated relatively stable labor market conditions. There was an improvement in business sentiment, evidenced by the general business activity index increasing by five points to 6.8, while the company outlook index rose six points to 4.3—its first positive level in half a year. Outlook uncertainty showed a slight decline, with the index decreasing by two points to 11.2. As for price developments, there was a modest increase in cost pressures, with the input prices index climbing to 27.9 from 25.3, and the wages and benefits index ticking up two points to 15.7. Meanwhile, growth in selling prices remained steady, as indicated by the largely unchanged index at 2.7.