New York economic indicators show mixed manufacturing and service sector trends

Economic data from the New York Fed reveals diverging trends between the manufacturing and service sectors in the New York-Northern New Jersey region.

The Empire State Manufacturing Survey indicates that manufacturing conditions improved in October, with the headline diffusion index rising 17.9 points to 25.5, its highest level since December 2021. This growth was driven by increases in new orders, shipments, and unfilled orders. However, supply availability weakened, reaching its lowest point since June 2022, and the index for future general business conditions declined from 29.0 to 21.0.

In contrast, the service sector experienced a downturn. The Business Leaders Survey reported that the index for future business activity fell 10 points to -5.1, marking the first time it has entered negative territory since December 2025. The headline business activity index for the service sector dropped 12 points to -20.7, its lowest level since March. While employment remained steady, input prices continued to rise sharply, contributing to a pessimistic outlook among service sector executives.