The New York Fed’s Services Business Activity Index declined 4 points to -10.1 in June 2026, signaling a continued, modest contraction in the region’s service sector, according to respondents to the Federal Reserve Bank of New York’s Business Leaders Survey. The business climate index rose 10 points to -37.3, suggesting some improvement in sentiment, but overall conditions remained weak.
Employment growth accelerated to its fastest rate in two years, and wages continued to rise. At the same time, supply chain pressures intensified, and both input and selling prices stayed elevated.
Looking ahead, firms remain cautious, with expectations still pointing to a subdued outlook. While businesses anticipate further increases in employment, their capital spending plans remain restrained.
