The Federal Reserve Bank of New York’s general business activity index, which tracks economic activity in New York State as well as parts of New Jersey and Connecticut, rose to -16.1 in January 2026, up from -20.0 in December. This marked the highest level since August, though the reading still signaled a sharp contraction in the region’s service sector. The business climate index remained deeply negative at -34.4, indicating that conditions are worse than normal. Employment declined for the fifth consecutive month, while wage growth increased modestly. Supply availability showed little change. Both input cost and selling price increases slowed. Looking ahead, firms anticipate only modest improvements in conditions over the next six months.

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