Six districts reported no change, four reported modest or moderate growth, and two noted slight contractions.
Overall US economic activity rose slightly since mid-January, the latest Federal Reserve Beige Book said.
Six districts reported no change, four reported modest or moderate growth, and two noted slight contractions.
Manufacturing activity showed slight to modest increases across a majority of Fed districts.
Consumer spending was lower on balance, with reports of solid demand for essential goods.
Commonly known as the Beige Book, this report is published eight times a year.
Consumer spending was lower on balance, with reports of solid demand for essential goods mixed with increased price sensitivity for discretionary items, particularly among lower-income shoppers.
Manufacturing activity exhibited slight to modest increases across a majority of Fed districts. Contacts in manufacturing expressed concerns over the potential impact of looming trade policy changes.
Banking activity was slightly higher on balance among districts that reported on it.
Agricultural conditions deteriorated some among reporting districts. Overall expectations for economic activity over the coming months were slightly optimistic.
Employment nudged slightly higher on balance, with four districts reporting a slight increase, seven reporting no change and one reporting a slight decline.
Employment declines were reported in manufacturing. Labour availability improved for many sectors and districts, though there were occasional reports of a tight labour market in targeted sectors or occupations.
Contacts in multiple districts said rising uncertainty over immigration and other matters was influencing current and future labour demand.
Wages grew at a modest-to-moderate pace, which was slightly slower than the previous report, with several districts noting that wage pressures were easing.
Prices increased moderately in most districts, but several reported an uptick in the pace of increase relative to the previous reporting period.
Input price pressures were generally greater than sales price pressures, particularly in manufacturing and construction.
Reports of substantial increases in insurance and freight transportation costs were also widespread. Firms in multiple districts noted difficulty passing input costs on to customers.
However, contacts in most districts expected potential tariffs on inputs would lead them to raise prices, with isolated reports of firms raising prices preemptively.
Fibre2Fashion News Desk (DS)
