The New York Fed’s Empire State Manufacturing Index rose to 20.6 in August 2026 from 15.6 in July and largely beating market forecasts of 11. The lates data showed that New York State manufacturing activity grew for a second month and to the greatest extent since late 2021, as both new orders and shipments continued to strengthen. Meanwhile, unfilled orders climbed notably amid substantially longer delivery times. Falling inventories suggested further deterioration in supply availability. Employment and the average workweek rose modestly, while input price pressures accelerated. Selling price growth remained elevated but moderated for a second consecutive month. Despite these cost and supply pressures, firms maintained an optimistic outlook for business activity.