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Philly Fed Non-Mfg Sees Mixed Inflation Progress In Special Questions

US DATA
  • The Philly Fed non-manufacturing survey saw regional activity slip in August, falling to -13.1 vs +1.4 prior, whilst new orders printed its third consecutive negative reading with -16.0 (-3pts).
  • Own prices: 3.0% over the past four quarters, down from the 4.0% in May. However, they still expect prices to rise 4.0% over the next four quarters for unchanged from when last asked in May.
  • Employee compensation costs (wages plus benefits on a per employee basis): seen rising 4.0% over the next four quarters, unchanged from May.
  • Slight progress on consumer inflation expectations with one-year median forecast 4.8% down slightly from 5.0% in May. More progress in the long-run (10-year average) rate at 3.0% vs 4.0% in May.

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