According to Fed’s Beige Book economic report, 8 of 12 districts reported modest to moderate growth in the period through January 7. Two districts reported flat or slight growth. Another two reported slower pace of growth.
The report noted that “outlooks generally remained positive, but many districts reported that contacts had become less optimistic in response to increased financial market volatility, rising short-term interest rates, falling energy prices and elevated trade and political uncertainty”.
On prices, most Districts indicated that firms’ input costs had risen due to :rising materials and freight prices”. And, “a number of Districts said that higher tariffs were also a factor.”
