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.