The Dallas Fed Services Sector Survey General Business Activity index fell -3.4 pts to 7.4 in January. The Revenue index fell -8.2 pts to 5.7, moving below the series average and the lowest since mid-2024, but expectations for revenue in the next 6 months continued to rise with 61.4% of firms reporting they expect sales to increase.

Both input and selling price growth ticked higher with the former index up 3.7 pts to 27.4 and the latter index up 6.0 pts to 13.7. Selling price inflation is roughly the highest in a year. Expectations for prices were both around the series average suggesting firms did not see elevated inflationary pressures coming.

The trend in employment was interesting. The general Employment Index fell -3.7 pts to -1.4, as hiring flipped to a contraction, but the Part-Time Employment index increased 4.9 pts to 4.5, switching from basically no change to growth.