In the Beige Book economic report, Fed noted that “economic activity continued to expand in late January and February”. 10 out of 12 districts reported “slight-to-moderate” growth, except Philadelphia and St. Louis, which were flat.
About half of districts said “government shutdown had led to slower economic activity in some sectors”, including retail, auto sales, tourism, real estate, restaurants, manufacturing, and staffing services.” Numerous manufacturing contacts expressed concerns on ” weakening global demand, higher costs due to tariffs, and ongoing trade policy uncertainty”.
Employment increased in most districts, with “modest-to-moderate” gains in a majority. Wages continued to increased, with a majority reported “moderately higher wages”. Price continued to increased at a “modest-to-moderate pace”. A few districts reported “upward price pressures from tariffs”. But several districts noted that steel prices had “stabilized or fallen recently”.
