Business Mood Darkens as Fed Index Plunges Again

The Federal Reserve Bank of New York’s latest survey of business leaders paints a grim picture of the business climate. The index dropped to -19.4 in September, down from -11.7 in August.  

That’s the lowest in five months and extends the longest streak of negative readings since the pandemic. 

The employment index fell 3.9 points to -2.9, its first dip into negative territory since June—signaling weaker labor conditions ahead. 

Price pressures remain stubborn. The future prices paid index stayed elevated, while the future prices received index climbed to its highest since mid-2022.  

Translation: businesses expect broader price hikes ahead. 

Taken together, the data suggests a slowing economy with persistent inflation. 

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Federal Reserve New York

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