Economy

Fed Beige Book: Economic activity steady, manufacturing declines
Written by Laura Miller
January 19, 2024
While there was little change in economic activity since its last update, the Federal Reserve reported declines in manufacturing in nearly all districts in its January Beige Book update.
The Fed’s economic report, published eight times each year, said there was little or no change in overall economic activity in eight of its twelve districts since its November update.
Three districts – Chicago, Dallas, and Richmond, Va. – experienced modest economic growth, while one district – Kansas City – saw a moderate decline.
In the manufacturing sector, the Chicago and New York districts reported moderate contraction. Minneapolis noted decreasing activity in both construction and manufacturing.
Districts said high interest rates continue to dampen auto sales and limit real estate transactions. However, many sources were hopeful about a potential decline in interest rates.
Causes for economic uncertainty in the districts include waning demand, the 2024 election cycle, and worries about the office market, the report said.
“Firms in most districts cited examples of steady or falling input prices, especially in the manufacturing and construction sectors, and more discounting by auto dealers,” the Book noted.

Laura Miller
Read more from Laura MillerLatest in Economy

House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.

Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.

Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).

Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)

Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.