FX.co ★ NY Services Activity Drops the Most in 7 Months

The New York Fed’s Services Business Activity Index dropped to -20.7 in October 2026 from -8.7 in September, its lowest reading since March, indicating a sharper contraction in business activity. The business climate index was little changed at -35.0, with just over half of respondents reporting conditions as worse than normal. Employment levels were stable, and wage growth remained modest. Supply availability continued to worsen, though the pace of deterioration slowed compared with September. Input costs continued to rise sharply, and selling price increases accelerated to their fastest pace since 2022. Capital spending stayed weak. Looking ahead, firms turned pessimistic about the six‑month outlook, with the expectations index slipping into negative territory for the first time since December 2025. Expectations for future increases in input and selling prices remained high and largely unchanged.