Fifth District non-manufacturing activity softened in December, with revenues and demand both weakening MoM, while expectations remained firmly positive.

• The Revenues Index edged down to -6 in December (from -4 in November), indicating a modest further pullback in current service-sector revenue conditions.

• The Demand Index fell to -3 (from 4), showing a shift from modest expansion to slight contraction in near-term demand.

• Local Business Conditions improved slightly to -11 (from -15), suggesting a small easing in firms’ negative assessments of the regional environment.

• Capital Expenditures declined to -9 (from -3), while Equipment & Software Spending held at 0 (from 4), pointing to restrained investment activity overall.

• The Employment Index rose to 5 (from 1), indicating improved hiring conditions, while the forward-looking employment index fell to 14 (from 24), showing softer expectations for future hiring.

• The Wages Index increased to 17 (from 12), signaling firmer current wage pressures, with firms continuing to expect wage increases over the next six months.

• Prices Paid rose to 6.13% (from 4.78%) and Prices Received ticked up to 3.16% (from 3.06%), reflecting renewed upward pressure on both input costs and selling prices, even as firms expect price growth to moderate ahead.