NY Services Activity Deteriorates the Most Since 2021

The Federal Reserve Bank of New York’s general business activity index, which tracks economic activity in New York State as well as parts of New Jersey and Connecticut, fell to -25.7 in February 2026, down from -16.1 in January. This represented the sharpest deterioration since early 2021 and signaled a sharp contraction in the region’s service sector. The business climate index remained deeply negative at -41.7, indicating that conditions are worse than normal. Employment declined for the sixth consecutive month, while wage growth continued to pick up. Supply availability worsened modestly. Both input cost and selling price increases were little changed and remained elevated. Looking ahead, firms became more optimistic and anticipate a modest pickup in activity over the next six months.

The Federal Reserve Bank of New York’s general business activity index, which tracks economic activity in New York State as well as parts of New Jersey and Connecticut, rose to -16.1 in January 2026, up from -20.0 in December. This marked the highest level since August, though the reading still signaled a sharp contraction in the region’s service sector. The business climate index remained deeply negative at -34.4, indicating that conditions are worse than normal. Employment declined for the fifth consecutive month, while wage growth increased modestly. Supply availability showed little change. Both input cost and selling price increases slowed. Looking ahead, firms anticipate only modest improvements in conditions over the next six months.

The Federal Reserve Bank of New York’s general business activity index, which tracks economic activity in New York State and parts of New Jersey and Connecticut, increased to -20.0 in December 2025 from -21.7 in November. Despite the increase, the reading showed that business activity continued to decline significantly in the region’s service sector in December. Employment fell for a fourth consecutive month (-7.4 vs -8.6), and wage growth remained modest (23.7 vs 25.4). Supply availability improved somewhat (-7.4 vs -11.1). Both input price increases (72.1 vs 61.9) and selling price increases (30.5 vs 20.1) picked up. Meanwhile, firms do not expect conditions to improve much in the months ahead. The business climate index drifted down to -44.2 (vs -42.2), suggesting the business climate remained worse than normal.