Philly Fed Services Survey hits lowest point since COVID

The Philadelphia Federal Reserve's Services Sector survey shows a significant decline in current and future business activity. The Current Activity index dropped sharply from -13.1 to -32.5, marking the lowest level since May 2020. The Future Activity index also fell considerably, down 34 points to -19.8. This is the fourth straight decline and the first negative reading since April 2020. Almost 46% of surveyed firms expect a decrease in future activity, while 26% anticipate increases and 23% expect no change. In the broader region, the future activity index decreased from -1.1 to -24.0. Other indexes, including those for general activity, new orders, and sales/revenues, remain negative, with general activity declining further. Despite these negative trends, both price indexes increased, suggesting a rise in overall prices. Additionally, the full-time employment index fell by 10 points to -7.5, the first negative reading for employment since August. This downturn indicates that the initial optimism following the recent election may be fading, even as some economic indicators show improvement.