Fifth District non-manufacturing activity was essentially flat in January, with modest MoM improvements in revenues and demand alongside softer input cost growth.

• The revenues index increased to -3 (Dec: -6; Nov: -4), indicating a smaller contraction in current service-sector revenue conditions.

• The demand index rose to 2 (Dec: -3; Nov: 4), shifting from slight contraction back into modest expansion.

• Local business conditions improved to -6 (Dec: -11; Nov: -15), showing a gradual easing in negative assessments of the regional environment.

• Capital expenditures remained negative at -5 (Dec: -9), while equipment and software spending held positive at 2 (Dec: 0), pointing to mixed investment activity.

• The employment index was unchanged at 5 (Dec: 5; Nov: 1), and the forward-looking employment index increased to 20 (Dec: 14), reflecting firmer hiring expectations.

• The wages index rose to 20 (Dec: 17; Nov: 12), indicating continued upward pressure on compensation.

• Prices paid growth slowed to 4.29% (Dec: 6.13%), while prices received edged up to 3.36% (Dec: 3.16%), showing easing input costs alongside slightly firmer selling price growth.