The Empire State Manufacturing Index is a monthly survey conducted by the Federal Reserve Bank of New York to assess the business conditions in the manufacturing sector within the state of New York. It is considered a key economic indicator that provides insights into the health and performance of manufacturing activity in the New York region. The index is based on a survey of manufacturing firms and measures various factors such as new orders, shipments, employment, and inventories.

The index is calculated by surveying manufacturing executives about their perceptions of current business conditions. It is a diffusion index, meaning that it measures the percentage of respondents who report an improvement in conditions minus the percentage who report a deterioration. A positive reading indicates improving conditions, while a negative reading suggests worsening conditions.

The Empire State Manufacturing Index is closely watched by economists and investors as it can provide early signals about broader economic trends, especially within the manufacturing sector. It can also be used as a leading indicator for the national ISM (Institute for Supply Management) Manufacturing Index.