Dallas, October 8, 2025
News Summary
In September, Texas business executives reported anxiety over recession concerns, domestic policy uncertainty, and inflation, as shown in a survey conducted by the Federal Reserve Bank of Dallas. The survey indicated a notable shift in focus from international risks to domestic economic pressures. Executives expressed mixed expectations regarding federal tax changes and highlighted a significant increase in remote and hybrid work arrangements since the pandemic, despite lingering opposition to such setups. The survey reflects current challenges faced by businesses in Texas aiming to navigate a complex economic landscape.
Dallas — Texas business executives identified recession concerns, domestic policy uncertainty, and inflation as the primary issues affecting their companies in September, according to a Federal Reserve Bank of Dallas survey that provides a snapshot of business sentiment across the state.
Top-line findings
The survey results show a clear shift in focus among Texas business leaders from international risks to internal economic pressures. Surveys conducted by the Federal Reserve Bank of Dallas indicated a shift in attention from geopolitical instability to domestic policies, labor costs, and inflation. The timing and responses captured in mid-September highlight rising concern about the near-term business climate within Texas.
Survey scope and timing
The Dallas Fed surveyed 323 business executives between September 16 and 24, before the federal government shutdown. The sample represents a range of companies operating in Texas and was collected just before federal funding disruptions began, giving a snapshot of sentiment during that window.
Policy and tax expectations
Executives reported mixed expectations about proposed federal tax changes. Nearly one-third of surveyed executives expect a positive impact from the tax provisions in President Trump’s “big beautiful bill.” At the same time, 13% of executives expect a negative impact from the same tax provisions, while 22% were unsure of the impact. These responses indicate that while a sizable share of firms anticipate benefit, a notable minority foresee harm or remain uncertain.
Labor and remote work trends
The survey tracked notable changes in workplace arrangements since early in the pandemic. The share of workers in fully remote or hybrid arrangements at these companies has nearly quadrupled since February 2020. Despite the growth in remote and hybrid setups, many Texas business executives remain opposed to remote work, according to comments recorded by the Dallas Fed from the survey. That opposition appears alongside widening labor costs and inflationary pressures as business leaders weigh staffing, productivity, and cost trade-offs.
Inflation, labor costs, and business outlook
Inflation and rising labor costs emerged as central operational concerns for many respondents. The shift in attention toward domestic policy and cost pressures suggests companies are prioritizing near-term financial and regulatory risks over overseas developments. The group of 323 executives provided insight into hiring plans, wage pressures, and the operational impact of inflation on margins and investment.
Context and significance
This set of responses is intended to serve as a snapshot of Texas business sentiment and trends. This information is part of a broader snapshot of the business sentiment and trends affecting companies in Texas. While the survey captures a specific period in mid-September, its findings highlight how domestic policy and economic conditions are shaping company decisions across the state.
Implications for businesses
For Texas firms and observers, the survey underscores several priorities: managing inflation-related costs, navigating policy uncertainty, and deciding the future role of remote work. The mixed expectations about federal tax provisions point to differing strategic views among firms about how policy changes will influence competitiveness and investment.
What the survey does not provide
The survey delivers attitudes and expectations from a defined group of executives at a specific time. It does not offer definitive projections about the broader economy or capture shifts in sentiment after the federal government shutdown that followed the survey period.
FAQ
- What were the primary issues for Texas business executives in September?
- Recession concerns, domestic policy uncertainty, and inflation were primary issues for Texas business executives last month.
- Who conducted the survey and what did it indicate?
- Surveys conducted by the Federal Reserve Bank of Dallas indicated a shift in attention from geopolitical instability to domestic policies, labor costs, and inflation.
- How many business executives were surveyed and when?
- The Dallas Fed surveyed 323 business executives between September 16 and 24, before the federal government shutdown.
- How did executives expect the tax provisions in President Trump’s “big beautiful bill” to affect their companies?
- Nearly one-third of surveyed executives expect a positive impact from the tax provisions in President Trump’s “big beautiful bill.” 13% of executives expect a negative impact from the same tax provisions, while 22% were unsure of the impact.
- How has remote or hybrid work changed at these companies?
- The share of workers in fully remote or hybrid arrangements at these companies has nearly quadrupled since February 2020.
- Do executives support remote work?
- Many Texas business executives remain opposed to remote work, according to comments recorded by the Dallas Fed from the survey.
- What broader context does this information provide?
- This information is part of a broader snapshot of the business sentiment and trends affecting companies in Texas.
| Feature | Detail |
|---|---|
| Primary issues identified | Recession concerns, domestic policy uncertainty, and inflation were primary issues for Texas business executives last month. |
| Survey timing and sample | The Dallas Fed surveyed 323 business executives between September 16 and 24, before the federal government shutdown. |
| Expectations on tax provisions (positive) | Nearly one-third of surveyed executives expect a positive impact from the tax provisions in President Trump’s “big beautiful bill.” |
| Expectations on tax provisions (negative / unsure) | 13% of executives expect a negative impact from the same tax provisions, while 22% were unsure of the impact. |
| Remote/hybrid work change | The share of workers in fully remote or hybrid arrangements at these companies has nearly quadrupled since February 2020. |
| Executive stance on remote work | Many Texas business executives remain opposed to remote work, according to comments recorded by the Dallas Fed from the survey. |
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Additional Resources
- Axios: Texas Business Concerns on Inflation
- Wikipedia: Business
- D Magazine: Dallas 500
- Google Search: Texas Business News
- NBC DFW: South Dallas Business Leaders
- Google Scholar: Texas Business Sentiment
- Dallas Innovates: Junior Achievement of Dallas
- Encyclopedia Britannica: Texas Economy
- Dallas News: Business Leaders and Mercury in Retrograde
- Google News: Texas Business Inflation
Author: STAFF HERE DALLAS WRITER
DALLAS STAFF WRITER The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
