Manufacturing Strength Accelerates; NY Empire State Index Hits 4-Year High Despite Supply Chain Stress
New York manufacturing activity jumped to its fastest pace in over four years in May, with the Empire State Manufacturing Index surging to 19.6. However, supply constraints are tightening, and firms are aggressively raising prices.
Manufacturing Momentum Accelerates
The NY Empire State Manufacturing Index in the US unexpectedly increased to 19.6 in May 2026 from 11 in April, above forecasts of 7.5, showing that New York State manufacturing activity grew at its fastest pace in over four years.
Orders and Shipments Surge
New orders (22.7 vs 19.3) and shipments (18.9 vs 20.2) increased considerably for the second consecutive month and unfilled orders rose (4.9 vs 9.1). Employment indicators also strengthened, with employment levels (8.3 vs 9.8) and the average workweek (11.5 vs 13.7) both continued to increase.
Supply and Price Pressures Mount
While demand is solid, manufacturers face mounting challenges. Delivery times lengthened substantially (20.4 vs 12.1), and supply availability worsened somewhat (-10.7 vs -10.1). Most notably, the pace of input price increases (62.6 vs 51) and selling price increases (31.8 vs 21.8) picked up sharply.
Forward Outlook Brightens
Firms grew more optimistic about the outlook (33.5 vs 19.6), with employment expected to grow while capital spending plans remained modest.