The outlook: Economic activity in most parts of the country was “slight to modest,” according to the Federal Reserve’s latest report on economic conditions known as the Beige Book.
What happened: Some districts report a leveling off of retail sales although demand for autos remained steady. Low inventories have constrained sales.
Restaurant owners are concerned that cooler weather will slow sales in coming months. Bank contacts are worried that delinquency rates may rise.
Employment levels were growing across the country but at a slow pace, the report said. Manufacturing was the most consistent sector to add jobs across the country. Wages only rose slightly and were often tied to how easy it was for firms to find workers.
Consumer prices rose modestly as construction, manufacturing and retail firms past along higher costs to their customers. Businesses faced increased costs due to COVID-19.
Big picture: The report covers the economy through Oct. 9 and is one of the last broad looks at economic conditions ahead of the presidential election. It pains a fairly tepid picture, While the U.S. economy has rebounded from the depths of the recession that began in March, many economists see the level of activity plateauing in coming months. Fed officials have been pressing Congress to pass another coronavirus relief package to help consumers and businesses survive while the coronavirus pandemic continues to constrain activity.
Market reaction: U.S. stocks were barely changed as investors awaited word about stimulus talks. The S&P 500 index
SPX,
+0.33%
was up 7 points in afternoon trading.
