The Philadelphia Fed Nonmanufacturing General Business Activity index fell -15.1 pts to -12.9 in February with the expectations activity index easing -12.0 pts to 13.8.

• New Orders and Sales are now declining with the former index down -2.9 pts to -1.3 and latter down -15.3 pts to -12.7.
• Unfilled orders flipped from moderately increasing to moderately declining, down -26.0 pts to -7.9.
• Prices Paid eased slightly to 23.4 but only 6.6% of firms reported costs declining. Prices Received remained slightly negative, down -0.8 pts to -1.1.
• Full time employment was barely positive at 2.5, but the average workweek index descended -11.5 pts to -7.5.

• Inflation expectations have cooled substantially according to the quarterly special question. The median firm expects prices received will grow 2.0% in the next year, down from the median of 2.8% in the November survey.