The general business activity index for the service sector published by the Federal Reserve Bank of Dallas inched higher by 2.2 points from the previous month to -7.7 in May of 2026. Revenue inched higher (5 vs 4.3 in April) to record the fifth month of growth. Still, business conditions were deteriorated by a persistent surge in input prices (29.7 vs 31.2) as the war in the Middle East lifted energy expenditure for the sector nationwide. In turn, employment fell at a faster pace (-3.2 vs -1).