New York manufacturing activity slowed in June as prices and supply pressures stayed elevated

The New York Federal Reserve’s June Empire State Manufacturing Survey showed factory activity in New York expanded at a slower pace, even as price pressures and supply strains remained elevated.

The survey’s general business conditions index fell to 5.7 in June from 19.6 in May, below the Wall Street Journal survey consensus of 13.9. A reading above zero still indicates expansion, but the softer result pointed to a clear cooling in momentum.

The report also showed only modest gains in key activity measures. The new orders index came in at 3.5 and the shipments index at 8.6, while unfilled orders increased.

Prices and supply pressures

Inflation pressures remained a concern. Input prices and selling prices stayed elevated, delivery times lengthened and supply availability worsened.

Those details matter because they suggest the slowdown in activity is not coming with a clean easing in cost pressures. For manufacturers, that combination can make it harder to protect margins and for policymakers it can complicate the inflation picture.

Hiring and outlook

There were still some signs of resilience. Employment increased for a fifth consecutive month, and firms remained fairly optimistic about future business activity.

The report was released on June 15, 2026, and adds to the evidence that New York manufacturing is still expanding, but at a less forceful pace than in May. The next monthly survey will show whether June was a pause or the start of a broader downshift.