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Philly Fed Non-Mfg Firms Expect Smaller Cost Increases This Year

US DATA
  • The Philly Fed non-mfg index fell 6pts to -3.7 in January, unwinding December’s pop to the first positive reading since Sep’22.
  • The special questions are of note. “For all categories, the average percent change in costs expected for 2024 was smaller than the average percent change in costs reported for 2023” – see table below.
  • “The respondents were also asked to rank the importance of various factors in setting prices. Demand for their own goods/services was again the most important factor, followed by wages and labor costs and maintaining steady profit margins.

Source: Philadelphia Fed

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