The New York Fed’s Empire State Manufacturing Index fell 13 points to 7.6 in September 2026 from 20.6 in August, when it reached a four-year high, and came in below the 15 consensus forecast in a Wall Street Journal economist poll. The reading indicated that manufacturing activity continued to expand but at a slower pace. New orders rose only slightly and shipments edged down, while unfilled orders increased as delivery times lengthened significantly and supply availability continued to worsen. Employment remained solid, with the employee index at 10.6, and the average workweek index rose 10 points to 17, its highest level in nearly five years. Cost pressures intensified as the prices paid index climbed five points to 63.1, slightly above its recent four-year high, while prices received rose to 28.1. Despite higher costs, manufacturers remained optimistic, with the future business conditions index at 29 and firms expecting stronger orders, shipments and employment in the months ahead.