The Empire State Manufacturing index rose slightly to -2.0 in September.
The reading on manufacturing in New York fell short of expectations, economists has expected it to come in at -1.0.
The index is still stronger than August, however, when it unexpectedly slumped to -4.2.
The index has fluctuated between positive and negative since pushing into expansion for the first time in eight months in March.
Both new orders and shipment indexes remained in negative territory and the outlook was weak overall.
Employment, according to the NY Fed, dropped significantly during the month.
"The employment index fell thirteen points to -14.3, indicating that employment levels contracted," said the release. "The average workweek index posted a similar decline, falling fourteen points to -11.6—a sign of retrenchment in hours worked. Both of these indexes reached their lowest levels of 2016."