The firm-level general activity index fell to 5.8 in February (from 16.2 in January) while regional activity remained negative at -17.3, indicating weaker nonmanufacturing conditions this month.

• New orders declined to -9.3 (from 5.5) and sales/revenues dropped to 8.2 (from 24.8), showing reduced demand and the first negative new orders reading since October.

• Full-time employment rose to 10.6 (from 9.7) and part-time employment to 5.5 (from -0.4), while the average workweek jumped to 29.5 (from 9.6), indicating continued labor market expansion.

• Prices paid increased to 40.7 (from 34.5) and prices received rose to 22.0 (from 13.2), both above long-run averages and signaling stronger price pressures.

• The unfilled orders index increased to 12.2 (from 6.7), pointing to a modest buildup in backlogs despite softer incoming demand.

• Inventories rose to 9.7 (from 4.0) while inventory sentiment improved to 2.7 (from -3.7), suggesting firms were more comfortable with stock levels.

• Supplier delivery times fell to 5.6 (from 12.0), indicating slightly faster deliveries after prior supply delays.

• The prices received outlook climbed to 45.0 (from 38.4) and prices paid outlook to 62.7 (from 61.6), showing firms expect continued cost and selling price increases.

• The capital expenditures index declined to 12.7 (from 18.7), implying a slower pace of planned investment activity.

• The general business activity outlook for firms reporting higher activity still exceeded those expecting declines, reinforcing expectations of continued expansion despite the softer current reading.

• Future firm-level activity edged down to 31.7 (from 33.7) and future regional activity improved to 14.2 (from 10.3), suggesting continued expectations for growth.

• About 49% of firms reported customers becoming more price sensitive and 56% anticipate cost changes, with most expecting competitors to raise prices within three months, indicating near-term pricing adjustments.

The Philadelphia Fed nonmanufacturing firm-level activity index rose to 16.2 in January 2026 (from 0.8 in December), signaling a stronger improvement in current service-sector conditions.

• The diffusion index for firm-level general activity increased to 16.2 (from 0.8), with 35.5% of firms reporting increases versus 19.3% reporting decreases, while 45.2% reported no change.

• The regional general activity index improved by 17 pts but stayed negative at -4.2 (from -21.6), indicating conditions were still judged weak at the regional level despite the monthly improvement.

• Demand-related indicators strengthened, with new orders rising to 5.5 (from 0.2) and sales/revenues climbing to 24.8 (from 12.1), with the sales/revenues index the highest since October 2024.

• Full-time employment remained positive and rose to 9.7 (from 7.5), while part-time/temporary employment fell sharply to -0.4 (from 14.9), reaching its lowest level since September.

• Price pressures eased but remained positive, with prices paid down to 34.5 (from 36.9) and prices received down to 13.2 (from 16.2), both near long-term averages and still consistent with net increases.

• The future firm-level activity index surged to 33.7 (from 6.1), its highest since December 2024, with 49.6% expecting increases over the next six months versus 15.9% expecting decreases.

• The future regional activity index turned positive to 10.3 (from -19.1), marking the first positive reading since February 2025 and suggesting broader expectations improved alongside firm outlooks.

The Philadelphia Fed non-manufacturing firm-level activity index softened in December, with the general activity diffusion index falling to 4.3 from 19.8 in November, indicating slower but still positive conditions.

• Firm-level general activity declined 16 points to 4.3, as the share reporting increases fell to 36% and the share reporting decreases rose to 32%, largely reversing last month’s gain.

• New orders eased 3 points to 3.2, with 28% of firms reporting increases and 25% reporting declines, signaling slower but positive demand growth.

• Sales and revenues slipped 2 points to 15.3, moving slightly below the long-run average but remaining firmly positive.

• Full-time employment rose 7 points to 9.6, the highest since May, while part-time employment jumped to 17.5 from -0.6, showing broad-based hiring gains.

• The average employee workweek declined 3 points to 10.5, indicating slightly reduced labor utilization despite higher employment.

• Prices paid increased 6 points to 40.3, the highest since August, while prices received edged down 3 points to 19.0, with most firms reporting no change in selling prices.

• Expectations for firm-level activity improved, with the six-month outlook index rising 10 points to 11.4, even as the future regional activity index remained negative at -13.8.

General nonmanufacturing activity in the Philadelphia Fed region strengthened in November, with the firm-level activity index rising to 19.8 from 3.6, marking a sharp rebound after two months of declines.

• New Orders increased to 6.6 (from -17.4), indicating demand stabilized after October’s drop.

• Sales/Revenues rose to 17.1 (from -2.4), showing a clear pickup in current business activity.

• Full-Time Employment improved to 2.5 (from -4.5), though most firms reported no staffing changes.

• Prices Paid eased slightly to 34.7 (from 35.8) while Prices Received jumped to 22.0 (from 12.9), with both remaining above long-run averages.

• The Average Workweek rose to 13.6 (from -1.2), signaling increased labor utilization.

• Capital Expenditures for Physical Plant and Equipment & Software registered diffusion indexes of 3.0 and 12.4, pointing to moderate investment.

• The Future Firm-Level Activity Index edged up to 1.2 (from 0.2), suggesting mixed expectations for growth over the next six months.

• The regional outlook stayed negative at -13.3 (from -12.3), reflecting continued pessimism about broader local conditions.

The Philadelphia Fed’s October 2025 Nonmanufacturing Business Outlook Survey showed regional services activity softening further, with the firm-level activity index down 2 pts to 3.6 and both new orders and sales/revenues turning negative, reflecting weaker demand momentum.

• New Orders dropped -18 pts to -17.4, the first negative reading since June, as more firms reported order declines.

• Sales/Revenues fell -20 pts to -2.4, the lowest since May, pointing to a slowdown in business activity.

• Full-Time Employment fell -14 pts to -4.5, the weakest since April, with nearly one-fifth of firms reducing headcounts.

• Prices Paid eased -3 pts to 35.8 but remained elevated, indicating ongoing input cost pressures; Prices Received declined -9 pts to 12.9.

• The Future Firm-Level Activity Index slid -12 pts to 0.2, suggesting little expectation for near-term improvement, while the regional outlook fell to -12.3.

• About 39% of firms plan to raise capital spending in 2026 (vs 21% expecting cuts), mainly in software and hardware, though spending on structures and energy-saving investments is expected to decline.