18.12.202513:30:00UTC+00Philadelphia Fed Business Conditions Report Indicates Decline in December

The Philadelphia Federal Reserve's Business Conditions Survey has reported a notable decline in December, reflecting a cautious outlook for the regional economy. According to the most recent data published on December 18, 2025, the report's indicator has slid from a figure of 49.6 in November to 41.6 in December.

This downturn marks a shift in sentiment among businesses within the region, which could be indicative of broader economic conditions impacting the United States. The indicator, known as the Philly Fed Index, is a key measure of manufacturing health within the mid-Atlantic region, providing insight into changes in regional business activity.

The current figure of 41.6, while still in expansion territory (above 50 indicates growth, and below 50 indicates contraction), suggests that while the economy continues to grow, the pace has slowed significantly. This deceleration may lead businesses, investors, and policymakers to closely monitor economic trends and adjust strategies to tackle potential challenges that may arise if the index continues to trend downwards in the coming months. The decrease could be attributed to various factors including supply chain disruptions, labor market dynamics, or shifts in domestic and international demand.