US DATA
The June Philadelphia Fed Nonmanufacturing Business Outlook survey showed an improvement in activity, employment and sentiment among nonmanufacturers, alongside mixed price pressures.
- The Philly Fed nonmanufacturing current General Activity index (comparing current activity vs the prior month) rose by 3.5 points to 2.9, the first positive reading of 2024 - but the standout in the report was the 6-month forward expectations index jumping over 38 points to 44.7, which was the highest since November 2021.
- Inflation dynamics were slightly divergent: prices paid fell to a 12-month low 24.4 (basically back to January 2021 levels), whereas prices received jumped over 11 points to a 13-month high 16.6.
- This contrasts with the region's June manufacturing survey which surprisingly fell to its weakest level since January, with nonmanufacturers also indicating much less pronounced price pressures.
- On the employment front, both the part-time and full time indices jumped, but wages and benefits pulled back to levels last seen in early 2021.
- New Orders rose to a 17-month high 6.7, with sales/revenues also improving.
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