The NY Fed Business Leaders Survey showed a sharp deterioration in September, with the Business Activity Index dropping -7.7 pts to -19.4, its lowest since April, reflecting ongoing weakness in the regional service sector.

• The Business Climate Index slipped further to -40.7 (from -39.3), with over half of firms reporting conditions worse than normal.

• Employment edged lower as the index fell -3.9 pts to -2.9, while the Wages Index held steady at 28.2, suggesting wage growth was modest but unchanged.

• The Prices Paid Index eased slightly to 63.2 (from 64.3) but remained elevated, while the Prices Received Index was stable at 32.2, indicating continued widespread selling price increases.

• Supply availability worsened, with the index at -9.6, consistent with persistent constraints in inputs.

• Capital Spending improved to 1.4 (from -2.9), moving back into positive territory but still soft by historical standards.

• Firms’ expectations stayed negative, with the Future Business Activity Index at -5.8 and the Future Business Climate Index well below zero, reflecting ongoing pessimism.

• Notably, the Future Prices Received Index rose to its highest in more than three years, pointing to expectations of stronger selling price increases ahead.