The latest Nonmanufacturing Business Outlook Survey from the Philadelphia Fed shows a downturn in nonmanufacturing activity in July. Key metrics, including general firm activity, new orders, and sales/revenues, have all turned negative. The employment index for full-time workers also indicates a decline. Despite ongoing price increases, firms maintain cautious optimism for growth in the coming six months, though confidence is waning.

Key Highlights: General activity index plummeted from 15.1 in June to -10.0. New orders index dropped from 6.7 to -7.1. Sales/revenues index fell from 14.5 to -3.5. Regional activity index hit -19.1, the lowest since December 2020. Full-time employment index fell from 15.1 to -4.9. Prices paid index increased to 30.2, while prices received index declined to 13.9