NY Fed Survey: Service Prices Surge, Activity Falls

The New York Fed’s October survey found service-sector input costs remained sharply elevated, selling-price increases reached their fastest pace since 2022, and supply availability worsened. Business sentiment weakened: the activity index fell 12 points to -20.7, its lowest reading since March, while companies grew more pessimistic about the outlook and reported weak capital-spending plans. The findings reinforce concerns that inflation is persisting, with tariffs and higher energy costs cited as contributing pressures, even as other indicators point to solid economic activity, low unemployment, and strong technology-related investment. Federal Reserve officials have not signaled their next move, though markets anticipate another rate increase before year-end; Chicago Fed President Austan Goolsbee said services inflation showed little sign of easing.