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.