Economic activity slows further as consumer spending falls, manufacturing: Fed By Investing.com

Investing.com — Economic activity slowed in several districts, weighed down by weaker consumer spending and manufacturing activity, according to the Federal Reserve, released on Wednesday.

“Economic activity increased slightly in three districts, while the number of districts reporting flat or declining activity rose from five in the previous period to nine in the current period,” the Fed said in its Beige Book economic report on based on anecdotal information collected. by the Fed’s 12 reserve banks until August 28.

Consumer spending and manufacturing activity fell in most districts, weighing on economic growth.

In the labor market, while employment levels were steady, there were “isolated reports that firms filled only needed positions, reduced hours and shifts, or reduced overall employment levels through attrition,” signaling a further slowdown of the labor market.

“Employers were more selective about hiring and were less likely to expand their workforce, citing concerns about demand and the uncertain economic outlook,” the report added.

The labor market is in focus ahead of Friday’s August jobs report, which may provide clues as to whether July’s weaker payrolls report was an aberration or the start of a significant slowdown.

The pace of inflation, meanwhile, was modest, with prices rising modestly in the most recent reporting period. “Overall, prices rose modestly in the most recent reporting period. However, three districts reported only slight increases in selling prices,” the Beige Book showed.

Looking ahead, contacts generally expected price and cost pressures to stabilize or ease further in the coming months, although expectations for future growth faced uncertainty due to upcoming elections, geopolitical conflict and inflation .