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 MillerRead more from Laura Miller
Latest in Economy
Metalformers’ outlook brightens in February: PMA
Metalformers expressed increased optimism about business activity this month, according to the February 2024 Precision Metalforming Association (PMA) Business Conditions Report.
AISI explains new PM2.5 air-quality regulation’s impact on steel
The US already had strict regulations on air-quality standards for particulate matter, but they are going to get even tighter.
Architecture Billings Index remains soft in January
The Architecture Billings Index (ABI) reading from the American Institute of Architects (AIA) and Deltek showed a slight uptick in January but continued to signal soft conditions. The index inched up from 45.4 in December to 46.2 in January. While the index has moved higher consecutively each month since October, it remains in contraction territory. […]
Manufacturing remains sluggish in New York state
Manufacturing activity in New York State continued to shrink this month, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
Housing starts drop again in January
US housing starts fell for the second consecutive month in January, according to the most recent data from the US Census Bureau.