NY Services Activity Expand to 2022-Highs

2026-07-16 12:44 By Larissa Caser 1 min. read

The New York Fed's Services Business Activity Index rose 19 points to 8.7 in July 2026, as business activity in the service sector rose for the first time in nearly two years.

The headline index reached its highest level since May 2022, with the business climate index rising 13 points to -24, indicating conditions improved significantly in recent months, though they remained below normal.

Employment continued to grow, albeit at a slower pace, and wage growth moderated.

Meanwhile, supply availability deteriorated further, while price increases eased slightly but remained elevated.

Looking ahead, firms turned optimistic about business conditions for the first time in well over a year and do not expect the business climate to worsen over the next six months.

Employment is expected to grow modestly, while supply availability is expected to worsen and capital spending remains subdued.



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NY Services Activity Expand to 2022-Highs
The New York Fed's Services Business Activity Index rose 19 points to 8.7 in July 2026, as business activity in the service sector rose for the first time in nearly two years. The headline index reached its highest level since May 2022, with the business climate index rising 13 points to -24, indicating conditions improved significantly in recent months, though they remained below normal. Employment continued to grow, albeit at a slower pace, and wage growth moderated. Meanwhile, supply availability deteriorated further, while price increases eased slightly but remained elevated. Looking ahead, firms turned optimistic about business conditions for the first time in well over a year and do not expect the business climate to worsen over the next six months. Employment is expected to grow modestly, while supply availability is expected to worsen and capital spending remains subdued.
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