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Philly Fed non-manufacturing price components softened in October, chiming with the generally softer activity components noted above. 

• Prices paid eased modestly from 38.8 to 35.8 in October.
• It recently peaked at 46.5 on tariff grounds, but remains above the 28 averaged in 2024 or 25 in 2019.
• Prices received saw a more notable moderation however, to 12.9 from 21.8 in September at what had been its highest since Dec 2024 and before that early 2023.
• This is back close to the 11.4 averaged in 2024 or 13.7 in 2019.
• The rolling over again in non-manufacturing selling prices looks notable as it suggests a halting in the pace at which previous manufacturing pressures are spilling over. Prices paid components generally have continued to move more closely with their manufacturing counterparts, suggesting difficult at passing through costs. 

Non-manufacturing firms in the Philadelphia Fed district echoed their manufacturing counterparts with a decline in activity in October. That is however when looking at what firms expect for their region whereas firm-level activity held up better, although the volatile new orders index did swing lower with its first negative reading since June.  

• The Philly Fed non-manufacturing business outlook survey fell 10pts to -22.2 in October, its weakest since June and a twelfth consecutive negative reading.
• This index, which shows on the Bloomberg calendar, is the regional activity index and has been notably more pessimistic than the firms’ own activity index.
• Indeed, current general activity at a firm level also eased in October but only from 5.8 to 3.6. It recently peaked at 24.6 in Aug having troughed at -26.7 in April on reciprocal tariff announcements.
• Firms are however increasingly less optimistic on the future though, with the six-month ahead general activity index slipping to 0.2 for its lowest since April having recently peaked at 21 in Aug.
• New orders are a particular weak spot within the broader details, slipping 18pts to -17.4 for the first negative reading since June although this is a noisy series that we’d want to see a second weak month for in order to draw stronger conclusions here.
• Employment components painted a mixed picture, with the full-time index slipping from 9.4 to -4.5, its most negative since Mar/Apr and before that Aug 2024, but part-time rising from -7.3 to 1.1 for its highest since Mar.  

• ”Japan New Prime Minister Takaichi: Determined to defend Japan's national interest through diplomacy, security” (Reuters)
• Elsewhere confirmation of the earlier Kyodo headlines:
  • Instructed cabinet to compile package of steps to cushion blow from rising cost of living
  • Plan to call on opposition parties for cooperation for stable politics
  • Will do utmost to cushion blow from U.S. tariffs on Japan's economy
  • Aim to elevate Japan-U.S. ties to new heights through meeting with President Trump (RTRS)