Highlights of the Fed’s anecdotal economic summary:
That’s a downgrade from modest previously.
Highlights:
- Businesses see expansion continuing, many have cut outlook
- Business activity varied across the country
- Districts in south and west were more upbeat that midwest and great plains
- Spending was solid on balance, housing market conditions changed little
- Some districts suggested persistent trade tensions and slower global growth weighed on activity; early impact of GM strike was limited
- Most expect economic expansion to continue; however many lowered their outlooks for growth in coming 6-12 months
- A number of manufacturers reduced headcount because orders were soft, some cut hours rather than reduce staff
- Wages rose moderately in most districts, with upwards pressure noted for lower-skill workers
- Employers continued to use bonuses and benefits to attract and retain talent
- Most districts characterized the recent pace of prices increases as modest
- Retailers and manufacturers noted rising input costs
- Shipping rates remained lower than they were earlier in the year because of excess capacity
