FX.co ★ NY Fed Services Index Reflects Further Deterioration

The Federal Reserve Bank of New York’s general business conditions index, which tracks economic activity in New York State as well as parts of New Jersey and Connecticut, edged up to -22.6 in March 2026 from -25.7 in February, a five-year low. Although this points to a slightly slower pace of contraction, the reading still marks one of the steepest declines in activity since the U.S. economy began recovering from the Covid shock five years earlier.

The business climate index fell by 4.5 points from the previous month to -46.2, while the prices received index (prices charged) slipped 1.1 points to 28.8. In contrast, the employment index improved modestly, rising 1.2 points to -8.5. Looking ahead, the index of business activity expectations over the next six months declined by 4.8 points to 12.7.