The NY Empire State Manufacturing Index edged down to 7.1 in February 2026 from 7.7 in January, broadly in line with market expectations of 7. Despite the slight decline, the reading continued to signal modest growth in manufacturing activity across New York State, and firms remained optimistic that conditions would keep improving, with employment projected to rise.
New orders rose at a slower pace (5.8 vs 6.6), while shipments were essentially unchanged (-1 vs 16.3). Unfilled orders turned higher (9.1 vs -8.2), and delivery times lengthened slightly (4 vs 0). Inventories increased somewhat (7.1 vs -2.1), and supply availability was little changed (-1 vs -4.1).
Labor market indicators improved modestly after weakening in the previous month: employment moved into positive territory (4 vs -9), and the average workweek also ticked up (2.1 vs -5.4).
Price pressures intensified, with the pace of input cost increases accelerating (49.1 vs 42.8) and selling prices also rising more quickly (22.2 vs 14.4). Capital spending plans strengthened noticeably (18.2 vs 10.3), suggesting firms remain committed to investment despite the only moderate rate of current growth.
