- Economic activity rose slightly in most Districts, with modest growth in some areas offsetting flat/declining activity elsewhere
- Employment levels flat to slightly higher, hiring subdued amid low turnover
- Wage growth softened to modest pace, except robust gains for entry-level and skilled trade positions
- Price increases modest; firms report greater difficulty passing costs to customers
- Consumer spending stable but price sensitivity increasing
- Manufacturing activity mixed across regions
- Commercial real estate markets showing signs of stabilization in some areas
Notable Details:
- Consumer price sensitivity rising, including quality sensitivity
- Insurance costs remain key inflation pressure point
- Businesses stockpiling inventory ahead of potential import tariffs
- Data center demand driving robust electricity usage growth
- Farm economy remains challenged with weak equipment sales
Outlook:
- Business expectations for growth improved moderately
- Most districts optimistic about demand increasing in coming months
- Some uncertainty around potential trade/immigration policy changes
- Firms cautious on hiring plans despite positive demand outlook
This article was written by Adam Button at www.forexlive.com.
