WASHINGTON—Two-thirds of the Federal Reserve's districts reported "modest or moderate" growth, according to the Fed's latest Beige Book data.
NAFCU Chief Economist and Vice President of Research Curt Long said the latest Beige Book findings indicate current economic conditions are beginning to slow for several reasons.
"The latest Beige Book supports the view of a slowing but still stable economy," said Long. "A number of Fed districts cited harsh winter weather as a temporary factor, but other more concerning factors are weighing on growth as well, including tariffs and declining sentiment. The labor market remains a strong buoy for now."
Economic activity expanded at a slight-to-moderate pace in March and early April. While most districts reported that growth continued at a similar pace as the previous report, a few districts reported some strengthening.
Also Worth Noting
Also of note in this report, according to Long:
- Economic activity expanded at a "slight-to-moderate pace in March and early April"
- Reports on consumer spending were "mixed but suggested sluggish sales for both general retailers and auto dealers"
- Reports on loan demand were "mixed, but indicated steady growth"
- Employment continued to increase nationwide, with nine districts reporting modest or moderate growth and the other three reporting slight growth
- A majority of districts cited shortages of skilled laborers, most commonly in manufacturing and construction
- On balance, prices have risen modestly since the previous report – tariffs, freight costs, and rising wages were often cited as key factors driving this trend, Long noted