Loan activity improved in the latest Dallas Fed Banking Conditions Survey, with the Total Loan Volume Index increasing to 16.7 (from 13.7), while loan demand slipped to 6.9 (from 9.6), indicating slower growth in lending.

• Commercial & Industrial (C&I) loan volume turned negative again (–5.9 vs +3.0 previously), and credit standards tightened further (–14.1), suggesting weaker business lending conditions.

• Commercial real estate loan volume remained positive at 10.3, though down from 14.9, while residential real estate loan volume improved to 13.0 (from –3.0), indicating a rebound in mortgage demand.

• Consumer loan volume contracted (–4.5 vs –5.5), and nonperforming consumer loans increased to 7.3 (from 5.5), signalling some deterioration in household credit quality.

• Credit standards remained tight across all segments, with the overall index at –13.0 (vs –8.8), and 0% of respondents reporting easier terms.

• Looking ahead six months, banks expect loan demand to improve (19.7) but nonperforming loans to rise further (2.9), while general business activity is expected to recover modestly (19.5).