The Dallas Fed's general business activity index increased 4.8 points from the previous month to 6.8 in August of 2025, the highest reading since January. The revenue index, a key measure of state service sector conditions, increased to 8.6 in August from 6.3 last month. Meanwhile, the employment index edged down to 1.2 from 2.8 in July, though it continued to reflect relatively stable labor market conditions. Business sentiment improved, with the general business activity index rising five points to 6.8 and the company outlook index climbing six points to 4.3 — its first positive reading in six months. Outlook uncertainty eased slightly, with the index down two points to 11.2. Regarding price development, cost pressures picked up modestly, as the input prices index rose to 27.9 from 25.3, and the wages and benefits index increased two points to 15.7. Selling price growth held steady, with the related index largely unchanged at 2.7.