Beige Book: Economic activity was little changed, outlook in some districts worsened

• Uncertainty around international trade policy was pervasive
• A few more districts than previously reported declines in employment
• Several districts reported firms taking a “wait-and-see approach to employment” while others are actively “preparing for layoffs.”
• The outlook in several districts worsened considerably as economic uncertainty around tariffs rose
• Prices increased across districts, similarly to the prior report
• Businesses are rushing to purchase ahead of tariff-related price increases
• Non-auto consumer spending declined overall, though vehicle sales showed strength as buyers rushed to purchase ahead of expected tariff increases
• Both leisure and business travel were reported down, with several districts noting a decline in international visitors, particularly from Canada
• Businesses across multiple sectors reporting they’ve put major decisions on pause due to uncertainty.
• NY district: “Service sector firms reported a major pullback in planned investment.”

This report was reported from data prior to April 15.

The key line was that “the outlook in several Districts worsened considerably as economic uncertainty, particularly surrounding tariffs, rose.”

Overall this report does little to pushback on the idea that an economic slowdown is coming.

This article was written by Adam Button at www.forexlive.com.