Philadelphia Fed Survey Index Rose to 22 in September

The rebound in business sentiment for regional service firms marks a shift from the contraction seen in August.

Updated on Sept. 22, 2026 in Economic Indicators

Isometric editorial illustration of a brass industrial valve assembly against a muted background, representing regional manufacturing and economic sentiment. — The Philadelphia Fed's nonmanufacturing index climbed to 22.0 in September, signaling a expansion in regional business sentiment across Pennsylvania and neighboring states. AI Illustration. Upload story photo >

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The Philadelphia Fed Nonmanufacturing Business Outlook Survey index jumped to 22.0 in September from a contractionary reading of -8.2 in August. This sentiment gauge tracks operational trends for companies across Pennsylvania, Delaware, and southern New Jersey.

Why it matters

Business sentiment readings provide key signals for the Federal Reserve as it evaluates interest rate trajectories. For operators in affected sectors like retail, logistics, and healthcare, this index reflects the balance of firms reporting expansion versus contraction in sales and employment.

The Philadelphia Fed index hit 22.0 in September, a sharp recovery from August's -8.2 reading. The survey, which has tracked firms across Pennsylvania, Delaware, and southern New Jersey since 2011, uses this diffusion index to confirm more firms are expanding than contracting.

The players

Philadelphia Fed

One of twelve regional reserve banks that performs economic research and monetary policy analysis.

The details

The index is derived by surveying firms on critical operational metrics including new orders, sales, employment, and pricing strategies. A value above zero indicates that the number of firms reporting growth exceeds those reporting a decline. By measuring these specific inputs, the survey provides a cross-industry pulse on the economic health of businesses ranging from local restaurants and professional services to logistics and healthcare providers.

2011: The survey began its monthly tracking of regional business activity.
July 2026: The index recorded a reading of 17.5.
August 2026: The index fell to a contractionary reading of -8.2.
September 2026: The index rebounded to 22.0.

Market Landscape

Business sentiment indices like this one serve as essential precursors to broader monetary policy adjustments. This reading follows the established pattern of the Federal Reserve using regional economic data to evaluate interest rate trajectories.

Operators should monitor these sentiment shifts as indicators of potential changes to borrowing costs and regional demand levels. Review your upcoming capital expenditure plans to see if they align with the broader recovery trend signaled by this month's data.

The takeaway

The sharp reversal from August’s negative reading suggests a meaningful improvement in short-term business expectations for service-based industries. Track the next monthly survey release to confirm if this 22.0 reading represents a durable trend or continued market volatility.