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Surveys

Special Questions

Texas Business Outlook Surveys
September 29, 2025

Special Questions

For this month’s survey, Texas business executives were asked supplemental questions on wages, prices, outlook concerns, tax reform and remote work. Results below include responses from participants of all three surveys: Texas Manufacturing Outlook Survey, Texas Service Sector Outlook Survey and Texas Retail Outlook Survey.

Texas Business Outlook Surveys

Data were collected September 16–24, and 323 Texas business executives responded to the surveys.

1. What percent change in wages, input prices and selling prices did your firm experience over the past 12 months?

Wage and price growth has accelerated somewhat, particularly for inputs. Texas firms surveyed report wage growth of 3.8 percent over the past 12 months, on average, 4.6 percent growth in input prices and 2.7 percent growth in selling prices. Price growth picked up pace from June in both the manufacturing and service sectors.

Chart 1
1a. What percent change in wages, input prices and selling prices do you expect over the next 12 months?

Wage and selling price growth expectations picked up in September, while expectations for input price growth held steady. Texas firms surveyed expect wages to increase 3.4 percent over the next 12 months, on average. They expect input prices to increase 3.8 percent and selling prices to increase 3.0 percent.

Chart 1a
2. What are the primary concerns around your firm's outlook over the next six months, if any? Please select up to three.

Demand remains the top outlook concern among Texas firms surveyed. The shares of firms citing domestic policy uncertainty and inflation rose in September, while geopolitical uncertainty retreated to the No. 4 spot.

Chart 2
3. How do you expect the tax provisions in the One Big Beautiful Bill Act (OBBBA) to impact your firm over the next year, on net?

A third of responding Texas businesses say they expect the tax provisions in the OBBBA to have a positive impact on their firm. Thirteen percent expect a negative impact, and the remainder don’t expect an impact or aren’t sure.

Chart 3
3a. What actions have you taken and/or do you plan to take in response to the tax provisions in the OBBBA that you weren’t otherwise planning to do, if any? Please select all that apply.

Among those positively impacted by OBBBA, the No. 1 action taken or planned in response is an increase in capital expenditures, followed by an increase in wages.

Chart 3a
4. What share of your employees is currently working remotely? Please provide shares for fully remote versus hybrid (combination of on-site and remote work).

The share of employees working remotely at responding Texas businesses has remained fairly stable over the past couple of years, after peaking in 2022 then retreating somewhat in 2023. Slightly more than 30 percent of employees on average work at least partially remote across Texas firms, with a fairly even split between fully remote versus hybrid work arrangements. The share is much smaller among manufacturers and retailers.

  Feb. '20
(percent)
Aug. '20
(percent)
Feb. '21
(percent)
Apr. '22
(percent)
Sep. '23
(percent)
Sep. '24
(percent)
Sep. '25
(percent)
Combined fully remote and hybrid 8.3 35.0 35.2 39.3 32.1 30.3 31.7
Fully remote 15.6 14.4 13.2 15.1
Hybrid 23.6 17.7 17.1 16.6

NOTES: 275 responses. Shown are averages, calculated as the means of received responses. Prior to April 2022, respondents were not asked to break out fully remote versus hybrid, and responses could be lower as a result if respondents had in mind only workers working mostly remotely. Responses for February 2020 are from an August 2020 question asking, "What share of your employees were working remotely in February (pre-COVID-19)?"

5. How has the share of employees working remotely changed over the past year?

The vast majority of Texas businesses surveyed say the shares of employees working remotely has not changed over the past year. Fourteen percent report decreases, exceeding the 6 percent share reporting increases


Sep. '24
(percent)
Sep. '25
(percent)
Increased 10.6 6.1
No change 76.5 80.1
Decreased 12.9 13.8

NOTE: 297 responses.

5a. Has the increase in remote work impacted your ability to hire and retain workers?
  Sep. '25
(percent)
Yes, it has made hiring and retention more difficult  7.1
Yes, it has made hiring and retention easier 35.7
No 57.1

NOTES: 14 responses. This question was only posed to firms who noted increases in remote work.

5b. Has the decrease in remote work impacted your ability to hire and retain workers?
  Sep. '25
(percent)
Yes, it has made hiring and retention more difficult  34.2
Yes, it has made hiring and retention easier 5.3
No 60.5

NOTES: 38 responses. This question was only posed to firms who noted decreases in remote work.

6. For employees who work mostly or entirely remotely, how has wage growth over the past year compared with wage growth for similar employees who work mostly on-site?

Most responding Texas businesses say wage growth over the past year has been about the same for employees who work remotely as it was for those who work mostly on-site. Thirteen percent report lower wage growth among remote workers, exceeding the 7 percent share reporting higher wage growth.

Chart 4

Survey respondents were given the opportunity to also provide comments, which can be found in the Comments tab above.

Texas Business Outlook Surveys

Data were collected September 16-24, and 68 Texas manufacturers responded to the survey.

1. What percent change in wages, input prices and selling prices did your firm experience over the past 12 months, and what do you expect over the next 12 months?
  Dec. '24 Mar. '25 Jun. '25 Sep. '25
  Past 12 months
(percent)
Next 12 months
(percent)
Past 12 months
(percent)
Next 12 months
(percent)
Past 12 months
(percent)
Next 12 months
(percent)
Past 12 months
(percent)
Next 12 months
(percent)
Wages 4.0 3.4 3.6 3.2 3.3 3.1 3.8 3.2
Input prices (excluding wages) 3.8 3.7 4.5 4.9 5.5 4.5 5.8 4.2
Selling prices 2.0 3.3 2.0 3.8 3.0 3.7 3.8 3.8

NOTES: 64 responses. Shown are averages, calculated as trimmed means with the lowest and highest 5 percent of responses omitted.

2. What are the primary concerns around your firm's outlook over the next six months, if any? Please select up to three.
  Jun. '24
(percent)
Sep. '24
(percent)
Dec. '24
(percent)
Mar. '25
(percent)
Jun. '25
(percent)
Sep. '25
(percent)
Level of demand/potential recession 52.4 63.2 37.5 50.0 47.9 50.0
Input costs/inflation 30.5 28.9 37.5 43.8 45.2 45.5
Domestic policy uncertainty 41.5 56.6 45.0 40.0 27.4 40.9
Geopolitical uncertainty 23.2 27.6 35.0 30.0 43.8 31.8
Labor costs 26.8 26.3 25.0 15.0 13.7 27.3
Labor shortages/difficulty hiring 25.6 14.5 22.5 18.8 17.8 22.7
Supply-chain disruptions 13.4 19.7 20.0 17.5 30.1 19.7
Taxes and regulation 30.5 31.6 16.3 23.8 23.3 12.1
Cost of credit/interest rates 19.5 13.2 13.8 10.0 13.7 10.6
Other 2.4 1.3 8.8 15.0 11.0 7.6
None 2.4 0.0 2.5 2.5 0.0 1.5

NOTE: 66 responses.

3. How do you expect the tax provisions in the One Big Beautiful Bill Act to impact your firm over the next year, on net?

Sep. '25
(percent)
Positive impact 40.9
No impact 34.8
Negative impact 7.6
Don’t know 16.7

NOTE: 66 responses.

3a. What actions have you taken and/or do you plan to take in response to the tax provisions in the One Big Beautiful Bill Act that you weren’t otherwise planning to do, if any? Please select all that apply.

Sep. '25
(percent)
Increase capital expenditures 55.6
Shift planned capital expenditures forward 22.2
Increase employees’ other compensation (e.g. bonuses, benefits, stock) 18.5
Increase employees’ wages 14.8
Pay down debt/increase savings 14.8
Increase hiring 7.4
Other 7.4
None 14.8

NOTES: 27 responses. This questions was only posed to firms expecting a positive impact from the tax provisions.

4. What share of your employees is currently working remotely? Please provide shares for fully remote versus hybrid (combination of on-site and remote work).
  Feb. '20
(percent)
Aug. '20
(percent)
Feb. '21
(percent)
Apr. '22
(percent)
Sep. '23
(percent)
Sep. '24
(percent)
Sep. '25
(percent)
Combined fully remote and hybrid 4.9 20.4 17.2 17.3 9.9 14.2 10.2
Fully remote 5.4 4.0 8.5 5.2
Hybrid 12.0 5.9 5.7 5.0

NOTES: 63 responses. Shown are averages, calculated as the mean of received responses. Prior to Apr. '22 respondents were not asked to break out fully remote versus hybrid, and responses could be lower as a result if respondents had in mind only workers working mostly remotely. Responses for Feb. '20 are from an Aug. '20 question asking, "What share of your employees were working remotely in February (pre-COVID-19)?"

5. How has the share of employees working remotely changed over the past year?

Sep. '24
(percent)
Sep. '25
(percent)
Increased 13.2 6.2
No change 75.0 87.7
Decreased 11.8 6.2

NOTE: 65 responses.

6. For employees who work mostly or entirely remotely, how has wage growth over the past year compared with wage growth for similar employees who work mostly on-site?
  Sep. '24
(percent)
Sep. '25
(percent)
Significantly higher 0.0 0.0
Slightly higher 1.8 6.5
About the same 83.9 80.6
Slightly lower 10.7 9.7
Significantly lower 3.6 3.2

NOTE: 31 responses.

Survey respondents were given the opportunity to also provide comments, which can be found in the Comments tab above.

Texas Business Outlook Surveys

Data were collected September 16-24, and 255 Texas business executives responded to the survey.

1. What percent change in wages, input prices and selling prices did your firm experience over the past 12 months, and what do you expect over the next 12 months?
  Dec. '24 Mar. '25 Jun. '25 Sep. '25
  Past 12 months
(percent)
Next 12 months
(percent)
Past 12 months
(percent)
Next 12 months
(percent)
Past 12 months
(percent)
Next 12 months
(percent)
Past 12 months
(percent)
Next 12 months
(percent)
Wages 4.5 4.1 3.8 3.5 3.8 3.2 3.8 3.4
Input prices (excluding wages) 4.0 3.5 4.0 4.1 3.8 3.6 4.2 3.7
Selling prices 2.6 3.0 2.7 2.9 2.3 2.5 2.4 2.8

NOTES: 215 responses. Shown are averages, calculated as trimmed means with the lowest and highest 5 percent of responses omitted.

2. What are the primary concerns around your firm's outlook over the next six months, if any? Please select up to three.
  Jun. '24
(percent)
Sep. '24
(percent)
Dec. '24
(percent)
Mar. '25
(percent)
Jun. '25
(percent)
Sep. '25
(percent)
Level of demand/potential recession 42.5 42.6 32.5 50.0 44.6 49.6
Domestic policy uncertainty 36.5 46.8 33.3 46.2 39.6 37.0
Input costs/inflation 35.7 27.2 34.5 33.1 29.2 35.3
Geopolitical uncertainty 18.7 20.9 21.8 26.3 40.4 25.6
Labor costs 35.3 29.8 30.2 19.1 19.6 24.4
Labor shortages/difficulty hiring 22.6 23.4 25.0 18.2 19.2 22.7
Cost of credit/interest rates 28.6 21.3 24.6 19.9 25.4 19.7
Taxes and regulation 19.8 29.4 25.0 19.5 18.3 17.6
Supply-chain disruptions 6.0 7.2 9.5 15.3 12.5 9.2
Other 2.4 2.6 6.0 6.8 7.1 7.1
None 4.8 3.4 2.4 1.7 1.7 3.4

NOTE: 238 responses.

3. How do you expect the tax provisions in the One Big Beautiful Bill Act to impact your firm over the next year, on net?

Sep. '25
(percent)
Positive impact 31.1
No impact 30.7
Negative impact 14.3
Don’t know 23.9

NOTE: 238 responses.

3a. What actions have you taken and/or do you plan to take in response to the tax provisions in the One Big Beautiful Bill Act that you weren’t otherwise planning to do, if any? Please select all that apply.

Sep. '25
(percent)
Increase capital expenditures 36.1
Increase employees’ wages 22.2
Pay down debt/increase savings 18.1
Increase hiring 16.7
Increase employees’ other compensation (e.g. bonuses, benefits, stock) 15.3
Shift planned capital expenditures forward 12.5
Other 1.4
None 36.1

NOTES: 72 responses. This questions was only posed to firms expecting a positive impact from the tax provisions.

4. What share of your employees is currently working remotely? Please provide shares for fully remote versus hybrid (combination of on-site and remote work).
  Feb. '20
(percent)
Aug. '20
(percent)
Feb. '21
(percent)
Apr. '22
(percent)
Sep. '23
(percent)
Sep. '24
(percent)
Sep. '25
(percent)
Combined fully remote and hybrid 9.5 40.4 42.2 47.1 39.4 35.7 38.0
Fully remote 19.4 17.8 14.9 18.1
Hybrid 27.7 21.6 20.8 19.9

NOTES: 212 responses. Shown are averages, calculated as the mean of received responses. Prior to Apr. '22 respondents were not asked to break out fully remote versus hybrid, and responses could be lower as a result if respondents had in mind only workers working mostly remotely. Responses for Feb. '20 are from an Aug. '20 question asking, "What share of your employees were working remotely in February (pre-COVID-19)?"

5. How has the share of employees working remotely changed over the past year?

Sep. '24
(percent)
Sep. '25
(percent)
Increased 9.8 6.0
No change 77.0 78.0
Decreased 13.2 15.9

NOTE: 232 responses.

6. For employees who work mostly or entirely remotely, how has wage growth over the past year compared with wage growth for similar employees who work mostly on-site?
  Sep. '24
(percent)
Sep. '25
(percent)
Significantly higher 2.1 0.0
Slightly higher 2.1 6.7
About the same 88.2 80.0
Slightly lower 5.3 10.8
Significantly lower 2.1 2.5

NOTE: 120 responses.

Survey respondents were given the opportunity to also provide comments, which can be found in the Comments tab above.

Texas Business Outlook Surveys

Data were collected September 16-24, and 47 Texas business executives responded to the survey.

1. What percent change in wages, input prices and selling prices did your firm experience over the past 12 months, and what do you expect over the next 12 months?
  Dec. '24 Mar. '25 Jun. '25 Sep. '25
  Past 12 months
(percent)
Next 12 months
(percent)
Past 12 months
(percent)
Next 12 months
(percent)
Past 12 months
(percent)
Next 12 months
(percent)
Past 12 months
(percent)
Next 12 months
(percent)
Wages 4.3 2.9 3.7 3.4 3.3 2.7 4.2 3.2
Input prices (excluding wages) 3.5 3.3 4.1 4.7 4.6 4.8 4.4 4.6
Selling prices 1.3 2.6 3.1 3.9 2.9 3.7 3.3 3.7

NOTES: 38 responses. Shown are averages, calculated as trimmed means with the lowest and highest 5 percent of responses omitted.

2. What are the primary concerns around your firm's outlook over the next six months, if any? Please select up to three.
  Jun. '24
(percent)
Sep. '24
(percent)
Dec. '24
(percent)
Mar. '25
(percent)
Jun. '25
(percent)
Sep. '25
(percent)
Level of demand/potential recession 45.3 48.1 42.6 43.6 42.1 47.7
Input costs/inflation 37.7 26.9 38.3 46.2 39.5 43.2
Geopolitical uncertainty 15.1 19.2 25.5 23.1 55.3 34.1
Labor costs 34.0 23.1 21.3 15.4 21.1 31.8
Labor shortages/difficulty hiring 18.9 25.0 27.7 23.1 15.8 25.0
Domestic policy uncertainty 28.3 42.3 31.9 33.3 34.2 25.0
Supply-chain disruptions 7.5 13.5 17.0 25.6 28.9 20.5
Taxes and regulation 11.3 26.9 14.9 17.9 7.9 20.5
Cost of credit/interest rates 45.3 26.9 25.5 17.9 21.1 13.6
Other 1.9 0.0 6.4 5.1 10.5 4.5
None 3.8 3.8 2.1 2.6 0.0 2.3

NOTE: 44 responses.

3. How do you expect the tax provisions in the One Big Beautiful Bill Act to impact your firm over the next year, on net?

Sep. '25
(percent)
Positive impact 36.4
No impact 31.8
Negative impact 11.4
Don’t know 20.5

NOTE: 44 responses.

3a. What actions have you taken and/or do you plan to take in response to the tax provisions in the One Big Beautiful Bill Act that you weren’t otherwise planning to do, if any? Please select all that apply.

Sep. '25
(percent)
Increase capital expenditures 37.5
Pay down debt/increase savings 31.3
Increase employees’ other compensation (e.g. bonuses, benefits, stock) 25.0
Increase employees’ wages 18.8
Shift planned capital expenditures forward 12.5
Increase hiring 12.5
Other 0.0
None 31.3

NOTES: 16 responses. This questions was only posed to firms expecting a positive impact from the tax provisions.

4. What share of your employees is currently working remotely? Please provide shares for fully remote versus hybrid (combination of on-site and remote work).
  Feb. '20
(percent)
Aug. '20
(percent)
Feb. '21
(percent)
Apr. '22
(percent)
Sep. '23
(percent)
Sep. '24
(percent)
Sep. '25
(percent)
Combined fully remote and hybrid 6.0 21.2 28.4 28.6 21.3 14.2 16.7
Fully remote 17.7 15.1 8.9 10.3
Hybrid 10.9 6.3 5.3 6.4

NOTES: 42 responses. Shown are averages, calculated as the mean of received responses. Prior to Apr. '22 respondents were not asked to break out fully remote versus hybrid, and responses could be lower as a result if respondents had in mind only workers working mostly remotely. Responses for Feb. '20 are from an Aug. '20 question asking, "What share of your employees were working remotely in February (pre-COVID-19)?"

5. How has the share of employees working remotely changed over the past year?

Sep. '24
(percent)
Sep. '25
(percent)
Increased 5.8 4.5
No change 86.5 86.4
Decreased 7.7 9.1

NOTE: 44 responses.

6. For employees who work mostly or entirely remotely, how has wage growth over the past year compared with wage growth for similar employees who work mostly on-site?
  Sep. '24
(percent)
Sep. '25
(percent)
Significantly higher 0.0 0.0
Slightly higher 0.0 0.0
About the same 91.2 93.8
Slightly lower 5.9 6.3
Significantly lower 2.9 0.0

NOTE: 16 responses.

Survey respondents were given the opportunity to also provide comments, which can be found in the Comments tab above.

Special Questions Comments

Survey participants are given the opportunity to submit comments. Some comments have been edited for grammar and clarity.

Texas Manufacturing Outlook Survey
Computer and electronic product manufacturing
  • U.S. Customs and Border Protection is applying steel and aluminum tariffs to products that do not contain steel or aluminum. I have already spent more than a month trying to get incorrect tariffs reversed, so far without success.
Fabricated metal product manufacturing
  • Working remotely is not an issue with our firm.
Furniture and related product manufacturing
  • Those requesting remote or hybrid work are typically young professionals (engineers, designers, programmers, etc.).
Machinery manufacturing
  • We have never allowed remote work. Our business is manufacturing and services, which requires all workers to be either at the customer site or in the office.
Texas Service Sector Outlook Survey
Administrative and support services
  • Current employees received a raise in January 2025 to increase their base salaries by about 4 percent. Commission percentages and incentive compensation were increased as well. Wages are currently the biggest drain on profitability for us, and we're currently working on the 2026 budget, when the incentive compensation will be revised, and two employees will receive reductions in their base salaries.
Credit intermediation and related activities
  • The rate of decrease in the number of financial institutions has accelerated. The number of locations has increased primarily through branching. Credit unions continue to expand including by purchasing banks. Statistics show that credit unions do not serve small businesses and consumers as well as community banks do. Credit unions do not pay taxes, and banks do.
Educational services
  • Wages and benefits for existing employees are fixed. New hire wages are tied to a fixed schedule. However, we have been hiring above entry level for some positions, as we cannot fill them at entry level. I don't describe this as an increase in wages and benefits, because it is not an across-the-board change, but it does result in slightly higher wage costs.
Professional, scientific and technical services
  • We are actively trying to get people back to the office at least three to four days a week.  Covid is in the rearview mirror, in-office workers boost camaraderie, training opportunities and production.
  • Foreign research has become more costly due to the depreciation of the U.S. dollar relative to other currencies.
  • We allow only a hybrid work schedule. We don't allow total remote work. We've seen that most of our employees prefer to be in the office. The hybrid policy is voluntary. We only see about 25 percent participation.
  • Because of a lack of experienced labor pool within our region, we had to hire a few remote workers. All things being equal, we definitely would not hire remote workers because the value of in-office interaction is important to what we do.
  • Staff who work entirely remotely are usually not in supervisory or managerial roles and don't want such roles, nor do they take on project management of projects that require large teams. Fully remote employees also have limited mentoring opportunities for younger team members due to the lack of in-person meeting time. As such, fully remote work arrangements tend to limit roles these employees take. As a result, employees in office tend to get opportunities that fully remote employees do not, which eventually impacts promotions and salary increases.
  • We've been fully remote since March 13, 2020.
Publishing industries (except internet)
  • We work in mostly software-related development work, so remote is working well for now, with facility infrastructure savings a plus.
Real estate
  • We've always considered remote work to be ill-advised and have never allowed it. Even during the pandemic, we declared ourselves essential and came to work every day. Sure workers like it, but it adds no value.
Rental and leasing services
  • Remote workers are a figment of some college professors. Transportation equipment manufacturing
  • We’ve seen cost and price increases due to tariffs. Things are totally uncertain for next 12 months.
Texas Retail Outlook Survey
Merchant wholesalers, nondurable goods
  • I had an employee in Dallas relocate to Colorado Springs in August. The move has forced me to consider all the options. I think 100 percent remote can work under the ideal circumstances. It is not suited for every employee or every role. I still find great value in workplace collaboration. Remote work does not allow for water cooler talk, which is vital for a healthy community and deeper personal connections.
Motor vehicle and parts dealers
  • We are not seeing remote work increases, but increases in the number of employees who want to take extended time off with no commitment to return to work.

Questions regarding the Texas Business Outlook Surveys can be addressed to Emily Kerr at emily.kerr@dal.frb.org.

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