FX.co ★ NY Services Activity Deteriorates the Most Since 2021

The Federal Reserve Bank of New York’s general business activity index, which measures economic conditions in New York State as well as parts of New Jersey and Connecticut, dropped to -25.7 in February 2026 from -16.1 in January. This marked the steepest decline since early 2021 and pointed to a pronounced contraction in the region’s service sector. The business climate index remained deeply negative at -41.7, underscoring that conditions are significantly worse than normal. Employment fell for the sixth straight month, even as wage growth continued to accelerate. Supply availability deteriorated slightly. Increases in both input costs and selling prices were largely unchanged and stayed elevated. Looking ahead, firms were somewhat more optimistic and expect a modest improvement in activity over the next six months.