Economic activity rose slightly in most DistrictsThree regions exhibited modest or moderate
growth that offset flat or slightly declining activity in two othersExpectations for growth rose moderately across most geographiesEmployment levels flat to slightly higher, hiring subdued amid low turnoverWage growth softened to modest pace, except robust gains for entry-level and skilled trade positionsPrice increases modest; firms report greater difficulty passing costs to customersConsumer spending stable but price sensitivity increasingManufacturing activity mixed across regionsCommercial real estate markets showing signs of stabilization in some areas
Notable Details:
Prices “rose only at a modest pace” across Federal Reserve DistrictsInsurance costs remain key inflation pressure pointBusinesses stockpiling inventory ahead of potential import tariffsData center demand driving robust electricity usage growth
Outlook:
Business expectations for growth improved moderatelyMost districts optimistic about demand increasing in coming monthsSome uncertainty around potential trade/immigration policy changesFirms cautious on hiring plans despite positive demand outlook
The prior report said economic activity was “little changed in nearly all Districts”. Fed officials cited the Beige Book for the big Fed cut in September. This time, the survey is a tad more upbeat, at least going forward. I find it hard to see a gamechanger here though.
This article was written by Adam Button at www.forexlive.com.
