Philly Fed Services just rolled over hard. Index dropped from +7.4 to -10.6 in August. New orders flipped negative (-10.1 from +12.5). Employment cooled sharply (+2.1 vs +12.4).
Meanwhile, prices paid still climbing at +29.2.
So demand is softening, hiring is slowing, but cost pressures aren't easing. That's the uncomfortable middle ground where the Fed has fewer good options.
Services have been the last pillar holding up this economy. When that wobbles, people notice.
Meanwhile, prices paid still climbing at +29.2.
So demand is softening, hiring is slowing, but cost pressures aren't easing. That's the uncomfortable middle ground where the Fed has fewer good options.
Services have been the last pillar holding up this economy. When that wobbles, people notice.
