Philly Fed nonmanufacturing
  • Prior was +27.3
  • Diffusion index for general activity +2.6 vs +25.9 prior -- lowest since Jan 2021
  • New orders +0.6 vs +15.0 prior
  • Employment +5.7 vs +13.7 prior
  • Prices paid +63.0 vs +51.0 prior
  • Six months from now +56.3 vs +56.6 prior
In this month’s special questions, the firms were asked about their expectations for changes in various input and labor costs for the coming year. Responses indicate an expected average increase of 7.3 percent for raw materials, followed by total compensation (wages plus benefits), intermediate goods, and energy, which are all expected to increase between 5 and 6 percent on average. The firms also expect wages to rise an average of 4.5 percent in 2022.

Overall, firms noted a slowdown -- likely omicron related -- but remain just as optimistic as before about the year ahead.