Blah Beige Book Reports Economic Growth in Only Three Districts

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The October 15 Federal Reserve Beige Book noted that most of the Federal Reserve Districts are either experiencing little to no economic growth or modest declines. Of the twelve Districts, only Boston, Philadelphia and Richmond reported some degree of economic expansion or increase in business activity. Several Districts noted that employers were beginning to institute headcount reductions because of a decline in economic activity and/or efficiencies brought about from AI.


There were a few consistent themes across most, if not all of the Districts. The construction sector is struggling with employment pressures because of federal immigration policies, consumer spending is generally K-shaped with higher income consumers spending freely but mid-to-lower consumers cutting back, the agriculture sector is facing headwinds and uncertainty from China trade issues, and the hospitality and tourism industry is experiencing a drop in international tourists, especially from Canada. There wasn’t much in the way of significant news coming out of this new Beige Book, but the overall lack of enthusiasm on the part of survey respondents in the vast majority of the Districts is notable.


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