After a positive surprise in July, Philly Fed's non-manufacturing survey slumped back into contraction in August (from +1.4 to -13.1). Additionally, while respondents continue to expect a growth over the next 6 months, that optimism is fading rapidly...

Source: Bloomberg

On a non-seasonally-adjusted basis, the Philly Fed Services survey plunged to -20.0 - practically its lowest level since the COVID lockdowns...

Source: Bloomberg

Under the hood it's even uglier with stagflationary impulses rearing their ugly heads.

Price indicator readings suggest continued increases in prices for inputs and the firms’ own goods and services.

The prices paid index increased 7 points to 46.2 this month. More than 50 percent of the firms reported increases in input prices. Regarding prices for the firms’ own goods and services, the prices received index rose from 7.8 to 14.6.

At the same time the indexes for sales/revenues and new orders both recorded negative readings this month

Source: Bloomberg

Is the 'Services' side of the economy finally catching down to the reality of the 'Manufacturing' side as savings run dry?