WASHINGTON—About half of the Federal Reserve's districts are reporting the month-long government shutdown resulted in slower economic activity in some sectors, according to the Fed's latest Beige Book data.
In addition to the effects from the shutdown, the Fed analyses also found trade tariffs to be a key economic stressor.
"The Beige Book highlights the key tensions facing the economy to open 2019, including the government shutdown and tariffs," said NAFCU Chief Economist and Vice President of Research Curt Long. "While those events certainly impacted consumer and business sentiment, the real economic impact has been muted. With trade tensions easing and a still-robust labor market, the economic picture should improve in the second quarter."
The sectors with slower economic activity noted in the report include retail, auto sales, tourism, real estate, restaurants, manufacturing, and staffing services.
Also of note in the latest Beige Book report, according to Long:
- Employment increased in most districts, with "modest-to-moderate gains in a majority of districts"
- Consumer spending activity was mixed across the country, with "contacts from several districts attributing lower retail and auto sales to harsh winter weather and to higher costs of credit"
- Manufacturing activity strengthened on balance, but numerous manufacturing contacts conveyed concerns about "weakening global demand, higher costs due to tariffs, and ongoing trade policy uncertainty"
- Economic activity continued to expand in late January and February, with 10 districts reporting "slight-to-moderate growth"