Most of the 12 Federal Reserve districts reported relatively little change in economic activity since September, with three districts reporting slight to modest growth in activity, five reporting no change and four noting a slight softening, according to the Fed’s seventh Beige Book report of the year.
Conditions in the financial services sector and other interest rate-sensitive sectors, such as residential and commercial real estate, were mixed, according to the report. Some districts noted improved business lending in recent weeks due to lower interest rates, while others continued to highlight muted activity.
The outlook for future economic growth varied by district and sector. Sentiment reportedly improved in a few districts, with some contacts expecting an uptick in demand over the next six to 12 months. Many others continued to expect elevated uncertainty to weigh down activity. One district report highlighted the downside risk to growth from a prolonged government shutdown.
