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.