New York factory activity cools to 7.6 as prices paid pass May's four-year high
On September 15, 2026, the New York Fed's Empire State index fell to 7.6 from 20.6, well below mid-teens forecasts, with prices paid at 63.1.
New York State manufacturers reported only modest expansion in September after August’s strongest reading in more than four years, and they reported faster increases in both the prices they pay and the prices they charge. The New York Fed released the survey shortly after 8:30 a.m. ET on Tuesday.
Zero is the line between more firms reporting an increase and more reporting a decrease. General business conditions fell 13 points to 7.6 from 20.6, remaining in expansion and well below mid-teens forecasts. New orders barely rose, at 2.0, and shipments fell to -3.2. Hours did not follow that cooling: the average workweek index, which tracks whether more plants reported a longer week or a shorter one, rose 10 points to 17.0, its highest in nearly five years. Prices paid rose five points to 63.1, edging above the four-year high reached in May, and prices received rose five points to 28.1, five days after final-demand producer prices were reported up 5.4% over the 12 months ended in August.
Richard Deitz, economic research advisor at the New York Fed, said employment grew at a solid pace while pricing pressures intensified. Firms were still constructive on the next six months. The future-business-conditions index came in at 29.0, and the New York Fed said orders, shipments, and employment are expected to grow. The questionnaire goes to New York manufacturers only. September’s print drew 101 responses from a pool of about 200 executives, collected between September 2 and September 10. It is a regional snapshot.
Wednesday’s Federal Reserve projections still have to say whether factory growth and factory prices ease together. New York’s September print showed them moving apart.
Frequently asked
How weak is a reading of 7.6?
It is still expansion, zero is the line between more firms reporting an increase and more reporting a decrease, but it is 13 points lower than the prior month and well below mid-teens forecasts.
Did the slowdown show up in orders and shipments?
Yes: new orders barely rose, at 2.0, and shipments turned negative at -3.2.
Why does the price reading matter?
Prices paid and prices received both accelerated even as growth cooled, so factory activity and factory prices moved apart rather than easing together.
How much does this survey cover?
It is a regional snapshot of New York manufacturers only, based on 101 responses from a pool of about 200 executives.