WASHINGTON—The Federal Reserve's 12 districts reported modest to moderate economic growth throughout the U.S., according to the Fed's latest Beige Book.
The data revealed in this report affirms the likelihood of another interest rate increase in December, noted NAFCU in its analysis.
"The Fed remains upbeat about the state of the economy," said NAFCU Chief Economist and Vice President of Research Curt Long. "Although the narrowing term spread has some observers nervous, the Fed has given few indications that it will cause a delay in rate hikes. A rate increase in December should be a go, followed by two more in the first half of 2019."
Also of note in this report, according to Long:
- Employment expanded "modestly or moderately across most of the nation"
- Labor shortages were noted, but most businesses said they expect labor demand to increase over the next six months
- Consumer spending increased at a "modest pace" while inflation ranged from "modest to moderate"
- Manufacturers reported moderate growth, but some firms noted "rising materials and shipping costs, uncertainties over the trade environment, and/or difficulties finding qualified workers"
- Hurricane Florence, according to the district in Richmond, "caused production disruptions for manufactures, port closures, reduced travel and tourism, and damages to crops and livestock"